LAUREL HILL — Since 2009, the city’s finances have improved dramatically, according to city auditor Joe Jones.
“In 2009, the city debt was much larger and the cash was much smaller than it is now. The cash has grown and the debt has decreased,” Jones said July 7 during his financial report. “The city finances have improved over the years as a result of frugality, good controls, money management and paying down the debt.”
Jones said checking account balances didn’t match, resulting in a discrepancy of about $1,000. However, “it isn't that big of a problem,” he said. “There was not a complete bank reconciliation done … It's mostly old outstanding checks that probably need to be voided.”
Jones estimated that in a two- or three-hour review of the past several years’ records with City Clerk Nita Miller and water clerk Sheryl Ward, the old checks can be identified and the discrepancy reconciled.
Jones also found a $1,000 to $2,000 error in the city’s accounts payable records, “but that was just a bookkeeping error,” he said.
Laurel Hill’s cash reserve has grown from $209,000 in 2009 to $645,000, of which $425,000 is unrestricted and can be used to fund improvements, Jones said.
Jones recommended the city set aside a small amount in a separate account for emergencies, such as unbudgeted equipment breakdowns.
The city should also consider a small water rate increase “now and then, to keep up with inflation and pipe and meters and other equipment,” he said.
He suggested a 1 or 2 percent increase every two or three years.
This article originally appeared on Crestview News Bulletin: Auditor: Laurel Hill finances improving, water rate increase suggested