Boggs gives annual report on status

The direction of the county’s financial health grows steadily upward as revenue streams, cash flows and efficiency improvements outweigh accumulated debt.

That was the report by Commission President Les Boggs as he made his fourth state of the county address to the commission at its Thursday meeting.

“The state of the county is good,” Boggs said.

That’s up from last year’s report where the commissioner described the county’s finances as stable and improving, a significant step-up over 2009 when the county struggled to pay almost a half-million in overdue bills.

“Lawrence County is in the best financial condition it has been in in 20 years,” Boggs said.

Sales tax revenue for 2011 was up almost $100,000 over 2010 with part of those funds going toward the county’s EMS services.

“We appreciate the residents of Lawrence County for continuing to purchase items in our county,” the commissioner’s report stated. “The funds we receive from the sales tax greatly increased in 2010 and held steady in 2011.”

That more than offset the decrease in the local government funds coming from the state that have been reduced to cover a $ 7 billion deficit in the state budget. In 2011 those state funds came in at $1,128,563 or $80,000 less than 2010. That compares to 2008 when the LGF was almost $1.4 million.

Property tax collections stayed even at $2.6 million but interest income was close to doubling from $192,407 in 2010 to $347,189 last year.

“It was a good year (for interest income),” Boggs said. “We had some CDs coming due when we had 4 percent income. Now we are lucky to get 1 percent.”

Approximately 50 percent of the general fund debt was paid off last year with most of that money going for the St. Mary’s Medical Center’s CAO medical complex outside of Ironton on State Route 141. That leaves debt at $1.7 million.

“This debt is not excessive for the amount of money the general fund budget holds,” Boggs’ report stated.

Total debt for the county is $28 million down about $2 million.

“This debt is mostly due to the new Union Rome Sewer Plant expansion,” according to the report. “(Union-Rome) sewer system rates for users were recently increased and should render enough revenue to pay the payments.”

The amount of carryover from 2011 to 2012 was $1.3 million or almost $400,000 from 2010 to 2011.

Last year the commission cut salaries by 7.5 percent, except for sheriff’s office road deputies; that led to a cut in retirement payments. However health insurance premiums rose by more than 9 percent, which is expected to be an expense in the future.

“The teamwork over politics philosophy has helped bring finances into check,” the report stated. “The county’s finances are good but has a way to go yet before we can get a perfect grade.”