Wednesday, Mar. 03, 2010

Garner in good financial health

But town could use rebound in revenue

Despite falling revenue, the town finished last fiscal year with a surplus of about $1 million in its daily operating fund, the town's finance director said.

But Garner spent almost $1 million more than it had planned to, according to an audit of the town's finances.

To cut costs amid declining revenue, town leaders decided not to spend about $1.9 million to renovate the police station, Jones said. But they shelled out almost $2.6 million to wrap up construction of White Deer Park, which opened last fall.

Overall, Finance Director Lin Jones said, the town's finances are in "excellent shape." The accounting firm Cherry, Bekaert and Holland presented the Town Council with a year-end financial audit late last month.

From July 2008 through June 2009, the town brought in about $23.4 million. That's about $400,000 less than the prior year. Money from fees, along with investment earnings, dropped.

Last fiscal year, the town took in less than $296,000 in inspection fees. That's a huge drop from the $703,000 generated the year before.

Proceeds from the fee developers pay instead of leaving green space in subdivisions also fell drastically -- from more than $420,000 in 2008 to about $34,000 last year.

"We didn't have anybody developing," Jones said.

In 2008, the town got almost $551,000 from investment earnings. That compares to about $215,000 last year.

Town leaders have talked about delving into high-priced projects, like a new town hall and police station and a community center.

If town leaders decide to tackle such a project, Jones said, they will have to decide if they want to use cash reserves or look for new revenue -- such as a tax hike.

In the meantime, Councilman Buck Kennedy said he was worried about the state's plan to delay income-tax refunds to residents.

"If they hold that back, I wonder what they'll hold back for us," Kennedy said, referring to state revenue that towns receive.