When Dal-Tile closed unexpectedly last year, it caused the city’s revenues to drop significantly. When looking at the city’s finances on a cash-in and cash-out basis, not counting the city’s carry-over funds, the city of Lewisport ran a shortfall of $417,361.
“They had a rough year, obviously, with Dal-Tile closing down,” Jennifer Estes, audit manager for Alexander and Company said. “It was a big blow to their gas (fund).”
For the year, Lewisport brought in revenues of $2,821,246 versus expenses of $3,238,607. The city covered the shortfall with its carry-over funds. The city entered the year with $6,393,594 in reserves, and ended the year with reserves of $5,976,233.
“It was a good audit,” Lewisport Mayor Chad Gregory said. “We knew what the numbers were going to show.”
Gregory said when Dal-Tile closed the city took steps to address the sudden loss of revenue. First, he said the city cut its expenses tremendously. Gregory said the loss of revenue from Dal-Tile forced the city to change its operations, and do so quickly. He said the steps helped the city.
“The employees run a tight ship,” Gregory said.
Estes said the city instituted an insurance tax to help offset the revenue shortfall, and Gregory said for this upcoming year the city does not plan any costly projects. Gregory said he expected expenses and revenues to balance this upcoming budget cycle.
“They made positive plans to address the issue,” Estes said. “There is not an ongoing concern.”
By Ralph Dickerson