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BPW has $700,000 depreciation loss Print E-mail

Amy Sawyer Ely of Dooley and Company presented the Bamberg City Council with “some brief highlights” of its’ audit report for the year ending June 30, 2008 at their March 9 2009 city council meeting.

“The city did have a good report this year, was clean, and had no findings that needed to be reported, you got the best opinion that a city can get,” Ely said.

Ely presented council members with a report of the state of net assets for the entire government, which she said includes the city as well as the Board of Public Works.

She stated that “tonight we will focus on the city.” Ely reported that the assets of the city are right above $3 million, almost $ 2 million of that are the capital assets which includes buildings, equipment, cars, etc. She reported that the city has liabilities of almost $300,000.

“When you take your assets, less what the town owes, you’re right at $3 million, is what the town’s net is,” she said.

Expenses for the city were right above $2 million, and the city’s main source of revenue is taxes. Other state revenue brought the city about $1.6 million, which was enough to cover most of the city’s expenses.

She reported that the city’s Fund Balance is right at $1 million “which is really good,” she said.

Under the category of revenue and expenses Ely reported the city’s revenue was right around $2 million, which included taxes, state revenue, fines, and grants that the city received. Expenses were right above $2 million.

“Basically the same thing, but compare it to your budget, basically you spent what was budgeted except the capital outlays, a little extra was spent there that wasn’t planned for,” she said.

Ely stated that “we will highlight the Board of Public Works because it is a part of the city’s report. She reported that the BPW had assets of $27 million, with liabilities right at over $1 million for total net assets of $26 million.

She reported that the BPW revenue is right above $8 million with expenses of $8.7 million, “so the board actually lost a little over $700,000 this year,” Ely said adding that does include some depreciation of $1.4 million.

“So you can call it cash in and cash out, but depreciation shows that higher utilities are gradually depleting in value, so that’s taken into account,” she said.

Ely said that in breaking down the city’s debt, the city still has debt for a tanker, and there were plans for the police department to be renovated that are still out there.

Councilmember Buddy Sandifer stated that, “I want to go back to this $718,659 loss.”

Ely reported that the BPW revenue is about $8 million, depreciation including expenditures total $8.7 million, which includes depreciations of $1.4 million.

“Depreciations isn’t like cash expenses, the board has assets, (using the example of having assets of $20 million and writing off $1 million) if you look at it from purely a cash in- cash out standpoint the board is probably ok, but if you are having to plan for the future, that’s something, their bottom line is out of line,” Ely said.

 
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