Report Says Town Finances Remain Strong

The town's finances remain strong despite the sputtering economy, according to an audit report presented to the Town Council recently.

Auditor Kenneth R. Anderson praised town officials for "prudent fiscal management during a major economic downturn."

In addition, Town Manager Steve Biggs said sales tax receipts are closely matching expectations used to calculate the fiscal year budget, falling less than two percent short. He said town officials will be working over the next few weeks to produce a forecast of the town's financial future using the figures and a report from the Finance Department.

"I really appreciate this," said Councilman Michael Grannis. "It's a great snapshot to see where we are."

Councilman Art Holder called the report "a good pat on the back," but stressed the importance of the upcoming forecast.

Finance Director Robert McKie said the town has shown "a strong ability" to meet its financial obligations, outperforming towns of similar size.

"The town has done a real good job of living within its means," he told the Council.

In a report titled "Evaluation of Financial Condition," he said Clayton "has improved its financial position at a higher rate" over the last five years than other towns of similar size in North Carolina have been able to do.

He said Clayton:
• Maintains larger reserves and fund balances
• Invests in new projects at a higher rate
• Has a stronger ability to repay the money it borrows for projects
• Continues to maintain a stronger financial condition