Aldermen get review of Bude's finances

The Town of Bude got an in-depth look at its financial standing on Tuesday, Dec. 6, as certified public accountant Bernell McGehee spotlighted a compilation of revenues and expenses from the recently completed fiscal year 2022 during the Board of Aldermen’s monthly business meeting.

“The general fund had assets totaling $782,740 and (Town Clerk) Kim (Vaughn) got all the bills paid with no liabilities lingering in the general fund,” McGehee said. “This included an unreserved fund balance total of $625,184 along with reserved balances in the fire fund ($152,700) and the town’s unemployment benefits ($4,856).”

In the town’s proprietary fund — its water and sewer account — McGehee reported that sector of the budget had assets of $2,527,468 versus $1,343,616 in liabilities.

He then broke down the town’s general fund revenue stream for FY 22, which saw a decline in comparison to fiscal year 2021 to the tune of $98,590.

“The intergovernmental line item saw a decrease, which appears to have been a grant that was received during the previous budget year,” McGehee noted.

In FY 22 (Oct. 1, 2021, through Sept. 30, 2022), intergovernmental funds received totaled $239,037 versus $388,294 brought in the previous fiscal year that ran from Oct. 1, 2020, to Sept. 30, 2021.

Additionally, fines and forfeitures slipped dramatically from $22,454 in FY 21 to $6,871 in FY 22 and interest income dipped slightly from $4,271 to $3,438 between those same budget years, respectively.

On the other hand, ad valorem tax collections increased during FY 22 to $139,375, which was up from $130,990 in the previous budget cycle.

Also on the general fund budget sheet, “other” revenue more than doubled to $55,140 for the most recently budget year. In FY 21, that amount was $21,310.

As a whole, Bude’s general fund revenue during fiscal year 2022 was $470,914 — down from $569,531 a year earlier.

General fund expenditures decreased ever so slightly with the town shelling out $346,529 to run municipal government during FY 22 as compared to $369,085 in FY 21.

McGehee reported Bude had a fund balance of $658,328 to start fiscal year 2022 and finished with $782,740 in the bank at the end of the term.

Where water and sewer were concerned, McGehee’s tabulations showed those funds had generated $367,500 in revenue through sales during FY 22, but expenses totaled $462,958 — leaving a negative operating income of $95,458.

Total non-operating revenues for water and sewer were reported at $62,094 — thus creating a net income loss of $33,364 during the just-completed fiscal year.

During fiscal year 2021, Bude’s water and sewer systems finished in the red by $47,572 with expenses outstripping income $326,687 to $279,115, respectively.

The net income loss during FY 21 was $65,819.

McGehee’s analysis of town resources found Bude had capital assets — primarily machinery and equipment — valued at $3,297,874.

The town’s indebtedness was calculated at $862,100 as of Sept. 30, 2022.

McGehee reported cash on deposits with two banks serving the town and found no irregularieis. He also sampled purchases made by the municipality and found that all applicable statutes were met with those expenses.

In other action during the Board of Aldermen meeting, these business items were discussed:

• Approved several pay requests related to the town’s Community Development Block Grant program in repairing municipal sewer lines north of the railroad.

Mitchell Contracting Inc., which is performing the sewer work, was paid for two invoices — $36,160.80 and $15,450.28.

Dungan Engineering was paid $2,157 for services it rendered in supporting the project.

• Authorized the final payment related to the replacement of a collapsed storm drain on Railroad Avenue adjacent to Home Hardware Center.

Municipal leaders voted to pay Mitchell Contracting Inc., for two final invoices on the project — $4,156.25 and $1,428.75.

Mayor Linda Green praised the work done on the project and said she was proud to see the street reopened after it had been closed to through traffic due to the collapse.

In a related matter, town officials approved a change order in connection with that street repair as the project came in about $4,800 less than originally projected.

• Voted to approve the town’s claims docket for December in the amount of $45,912.73. The board also approved the municipal payroll totaling $20,294.99 and the PERS — Public Employee Retirement System — contribution for $3,364.92.

• Adopted a letter to the Mississippi Legislature — particularly to members of Franklin County’s delegation in Jackson — in connection with the upcoming regular lawmaking session.

The town is seeking up to $2 million in consideration in any state-authorized bond bill to help pay for improvements to the municipal sewer lagoon.

• Approved the reconciliation of town revenues and expenditures for September, 2022.

• Moved forward with a maintenance agreement for computer hardware and software from BBI Inc.

• Accepted the holiday schedule as recommended by Gov. Tate Reeves, and amended the town’s personnel policies to reflect paid state holidays.

• Gave approval to the water deposit refunds to Celeshion Snead ($3.47) and Kenneth Ford ($54.50).

• Discussed health, dental and vision insurance rates.

The next business session for the Bude Board of Aldermen will be held at 6 p.m., Tuesday, Jan. 3 at town hall on Railroad Avenue.

Those wishing to address the board during the meeting should contact town hall no later than Thursday, Dec. 29 and ask to be placed on the agenda.