According to an audit presented at the March 22 City Council meeting, the city of Shenandoah has exceeded the amount that it requires it keep in its fund balance for the 2021-22 fiscal year.
City policy states that the city must maintain at least 50% of its general fund expenditures for the year in its unrestricted budgetary fund balance, but Senior Audit Manger Louis Breedlove said the audit report for 2021-22 shows 105% of this amount.
“The goal would be at least half of the year,” Breedlove said. “And the city is currently at a full year and a 5% [balance].”
According to Breedlove, in 2021-22 the city saw a net positive budget variance of $981,000 including other factors such as changes in expenditures and other funding sources.
The revenue increase was primarily due to sales tax and permit revenue being higher than anticipated, Breedlove said.
Breedlove also discussed changes to the water and sewer fund.
“So some of the changes that you all made this past year ... We're seeing that work and all the efforts put in driving that fund to have a more positive position,” Breedlove said regarding the city's water and sewer fund.
There was also an increase of about $816,000 for hotel occupancy tax revenue in 2021-22 due to factors such as an increase of visitations to the city, Breedlove said.
Editor's note: The story was updated to correct a word in a quote from "four" to "full," and to clarify the context of the final quote in the story.
