Last Modified: Tuesday, January 15, 2013 7:37 PM
SULPHUR — The city ended its 2012 fiscal year with a nearly $400,000 surplus, according to the city’s finance director.
Kevin Alley presented the city’s audit report for the fiscal year ending June 30, 2012, to the council Monday.
Total revenues in the general fund were $17.2 million and expenditures were $16.9 million, leaving a surplus of nearly $400,000 before transfers, he said.
Alley said most of the transfers were made to other funds dealing with capital projects.
The ending balance in the general fund for the 2012 fiscal year totaled $7.6 million.
Governmental funds, where the city’s general fund comes from, is what is “focused on the most,” Alley said.
Alley said sales tax revenue collected for the city totaled just over $13 million for the year — a $569,000 increase from the previous year.
Sales tax revenue makes up more than 50 percent of total revenues.
Mayor Chris Duncan said city department heads and Alley should be “commended for tightening their belts.”
“We have been working on a need-and-want basis; if we don’t need, then it’s not happening,” he said. “I want to praise the department heads on the accomplishments we made over the last year and are continuing to make.”
Alley said, however, that the utility fund is operating at a loss of $2.7 million, with operating revenues at $5.1 million and expenditures at $7.8 million.
The debt associated with the public utility fund, he said, is attributed to the city’s general obligation bond and capital lease. Alley said the total debt combined with the two items is $8.8 million. The debt is associated with the sewer facility that was put in service about six years ago. He said the debt will be paid off by June 2016.
Alley said once the debt is paid, it will help the cash flow to the utility fund.