Auditor: Opp in good financial standing

Published 12:00 am Wednesday, August 8, 2012

The City of Opp is in good financial standing, according to its accountant.

Brian Free of Carr, Riggs and Ingram presented the FY2011 audit report to the city council Monday night.

Free reported that in comparison to FY2010, the city saw an increase of more than $300,000 in FY2011.

The city generated $5.4 million in revenue for the general fund last fiscal year.

There were $12.7 million in expenditures, but some $7.5 million was passed through to Mizell Memorial Hospital in a bond issue.

Free said the city also saw a $37,000 increase in its gas taxes.

Free said revenues for FY2011 were $470,000 below budget.

“I believe that’s due to the down turn in the economy,” he said. “The city also spent $288,000 less. The city did a good job managing expenses.”

Free said the city had $4.5 million in capital assets in 2010, but added $800,000-plus in 2011, the majority coming from the sidewalk projects.

The city’s overall debt is $9.2 million, up from $2.9 million in 2010, with $6.8 million of that for the hospital in which the city doesn’t pay the note.

There is approximately $2.9 million for which the city is responsible, Free said.

Free told the council that the city utilities board had a profitable year with an increase of $1.86 million.

“There is a net cash flow of $3.8 million,” he said “There is an excess of $2.8 million available for the city.”

“I believe this shows that the city is in pretty decent financial shape,” Opp Mayor H.D. Edgar said.