By Lee Weyhrich
The Clay City Council received its annual financial audit report Monday.
In a way, the city received two reports, one as if it were a business or private entity, and another as a government organization. The difference is largely in the way debt is factored. For a government entity, debt is less important for audit purposes, as long as those funds have been used to purchase assets.
The city’s moneys are split into three funds: general, capital improvement and gas tax, auditor David Cork said. By taking the income of those funds versus the city’s expenditures, as would be done for a business, Clay has more than $346,000 more in expenditures than in revenue.
When the assets purchased with those expenditures are factored in, however, the Clay CIty Council has actually managed a $27,000 profit. This profit shows a greater understanding of fiscal responsibility than was seen in recent years.
Cork did see several areas in which changes need to be made. Mayor Charles Webster, City Manager Ronnie Dixon and the city council have already implemented many of the auditors’ suggestions.
“We believe it (the audit) will be far better next year than this year,” Cork said.
The council may also look into a new stream of revenue that would also improve the city’s coffers. Councilman Ricky Baker spoke of several public safety initiatives that could not be completed due to a lack of funding. These included additional police cars, additional deputies and street signs, among others. The only way to provide these additional services, he said, is by increasing cash flow.
“There are only two ways to do this,” Baker said. “You can either do property tax, which we don’t currently have, or you can increase sales tax.”
Trussville already has a property tax
. Additional revenue would allow the city to make much needed improvements, and free up some current funds for debt reduction.
Councilman Kevin Small said that in order for people to get the things they want, it is necessary for them to be willing to pay for them.