The city of Lake Charles collected more and spent more in fiscal year 2016 than it did the year before, and it finished the year on Sept. 30 with $30 million left in its general fund, according to an independent financial audit released Wednesday.
The audit was prepared by McElroy, Quirk and Burch with the help of the city finance department. City Finance Director Karen Harrell attributed the increase in revenue to an additional quarter-cent sales tax that took effect Jan. 1, 2016.
The report shows that general fund revenue for 2016 totaled $70 million, an increase of $3.9 million over the prior year. The new sales tax was responsible for $2.3 million of that increase. There was also a 2 percent increase in existing sales tax revenue and an 11 percent increase in property tax revenue.
The report shows that expenditures and transfers totaled $64.4 million, an increase of $3.4 million over the prior year. Harrell attributed the increase in expenditures to pay increases for city workers and transfers to other funds for operations and capital projects.
Pay increases of 10 percent for fire employees and 8 percent for all other employees took effect Jan. 1, 2016. An additional 2 percent pay increase for eligible fire employees went into effect Jan. 1, 2017.
Two notable transfers from the general fund to the capital fund were $7 million for wastewater capital projects and $15 million for a $42 million wastewater treatment plant, she said.
Capital project expenditures increased dramatically, from $14 million in fiscal year 2015 to $33 million in 2016. Harrell said the money went toward the new wastewater treatment plant, streets, sewer line repairs, water system improvements and other city projects, like improvements to Riverside Park.
The city ended fiscal year 2016 with $30 million left in its general fund, a number that represents 46 percent of its operating expenses — an excellent percentage in the financial world, Harrell said.
Jason Guillorwy, one of the auditors, spoke at the City Council agenda meeting Tuesday. He said Lake Charles was in solid financial condition and had done an excellent job setting up safeguards against misappropriation.
He said the city caught two instances of misappropriation almost immediately after they occurred: A Summer Food Service Program worker used the city card for gas, and two public works employees poured concrete on private property. Both instances combined totaled just under $400, Guillory said, and full restitution was made.
“I want to make sure I give full credit to the city control systems, because in both situations it was the city’s controls that detected what happened and they took appropriate measures to report it,” he said.
Councilwoman Luvertha August commended the city for doing an excellent job monitoring the flow of funds and reporting its finances.
“It just blows my mind when I hear innuendos about transparency or taxpayers’ money as it relates to the city of Lake Charles, because we are constantly given updates on where the money goes,” August said.
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