ARCHDALE — A financial audit presented by a representative from Hickory-based Martin-Starnes at the January meeting of Archdale City Council indicated the city is in good financial standing.
The audit, completed June 30, 2020, detailed the city’s financials for the 2019-20 Fiscal Year. In addressing council, Martin-Starnes’ Cassie Wilson said in her presentation that the city received a clean opinion.
“We issued an unmodified opinion on the financial statements,” Wilson said. “That is the highest opinion that we can give you.”
In 2019, the city recorded $8,437,706 in revenues and $9,479,631 in expenditures. In 2020, revenues increased and expenditures decreased. The $8,613,926 in revenues and $7,921,073 in expenditures proved beneficial for Archdale’s financial state.
According to the Local Government Commission, a municipality’s unassigned fund balance is integral in determining its financial health. Archdale’s available fund balance as a percentage of expenditures is 120%, placing the city above average compared with its peer cities.
Property taxes remained relatively comparable from 2019 to 2020 despite the global pandemic.
Other financial highlights from the city’s comprehensive annual financial report included an increase in the government’s total net position, which is up $1,722,175. Net position in business-type activities increased by $843,756, of which $833,225 is attributable to the water and sewer fund.
As of the close of the fiscal year, the city’s governmental funds reported combined
ending fund balances of $10,979,239, an increase of $820,900 in comparison with the prior year. Approximately 78% of the total amount, or $8,615,098, is available for spending at the government’s discretion.
A total of 88% of general fund revenues come from property taxes (36%), local sales taxes (35%), sales and services (12%) and utility sales tax (5%). At the end of the current fiscal year, unassigned fund balance for the general fund was $4,539,905, or 58% of total general fund expenditures for the fiscal year.
The fund balance for the general fund includes $626,621 assigned by city council to be used for possible future economic development incentives and $1,934,500 assigned for capital expenditures.
Staff writer Daniel Kennedy can be reached at 336-888-3578, or at firstname.lastname@example.org.