The Shenandoah City Council received an annual report on Jan. 26 indicating the fiscal year 2021 budget resulted in a positive budget variance of $1.2 million between having lower expenses and higher revenues compared to the previous year.

Presenter Louis Breedlove, senior audit manager with auditing firm BrooksWatson Certified Public Accountants, said the auditors were of the opinion that the city had a “clean” financial record for its budget, meaning no modifications were noted.

Breedlove said increased revenue sources largely came from property tax, which saw a 4% increase in revenue—around $78,000— and sales tax, which saw a 19% increase by bringing in $1.1 million more compared to 2020. Breedlove said the sales tax increase was a rebound from the effects of the coronavirus pandemic the previous year.

“You conservatively budgeted, and the sales tax came in greater than anticipated,” Breedlove said. “Expenditures were under budgeted ... Assuming the city was able to accomplish everything it was wanting to accomplish for fiscal year 2021, that is a sign of a very healthy fiscal year budget.”

The report indicated the general fund balance showed a net increase of $1.2 million compared to the fiscal year 2020 budget.