City ends year with surplus
A warmer than normal winter impacted the city’s sale of electricity and natural gas, but the city of Cairo closed out the 2011-2012 fiscal year with a $1,033,577 surplus.
City officials said this week the fiscal year ended better than they had anticipated with electric revenue down by $74,820.20 compared to last year and gas sales that were down by $239,375.40, but cable revenue was up $296,129.57 over last year.
“Considering the warm winter we came out ok,” City Manager Chris Addleton said.
Finance Director Miriam Faircloth presented the June 30 year end report to the council’s finance committee Monday.
Total general fund revenue for the year was $8,396,280 and expenses were $8,391,803 for a $4,477 surplus. The total revenue for the city’s enterprise funds, including utilities, was $29,968,922 and expenditures were $28,939,823 for a surplus of $1,029,100.
Although her report is unaudited, the report indicated a $102,886 net profit for CNS cable and telecom. According to Addleton, CNS is now covering the debt service of approximately $1 million annually and generating a small profit.
Addleton says the bonds on CNS will be retired at the end of 2016 and CNS can then begin to reimburse the city’s general fund. According to financial documents, CNS currently owes the general fund $3,517,586.73.
The city manager said his plan is to pay off the debt and then to continue to make annual payments to the general fund to the tune of $1 million a year until the general fund has been repaid.
Finance Committee Chairman and Mayor Pro Tem James H. (Jimmy) Douglas recommended approval of the year end financial statement and noted that at the next meeting the council would be presented budget amendments to approve before the books are turned over to the city’s auditors.
“All in all, we came out pretty good,” Douglas commented.