LaFayette spent too much, audit says

photo Neal Florence

LaFayette, Ga., spent more money than it brought in and changes in spending are needed, according to a recent audit.

The independent auditor noted that the city spent $856,000 more than it planned in the fiscal year ending Sept. 30, 2010.

"As the actual expenditures start to exceed the budget an amendment to the budget should be made or the expenses should not be incurred," the document states.

Auditor Lloyd Williamson of Williamson and Co. CPAs in Cartersville, Ga., said the city's income fell short of what leaders expected.

"Revenues didn't come in where they thought they would," he said.

"They're better than the federal government," Williamson said of LaFayette. "At least they have reserves."

His firm does about 16 municipal audits a year, he said, and in the last couple of years about three-quarters of the cities have found themselves overextended and having to dip into reserves.

Audits for Rossville and Chatsworth, Ga., released about the same time as LaFayette's did not include such findings. Rossville's audit did suggest the city purchase new software to track capital assets better.

LaFayette Mayor Neal Florence said the report did not come as a surprise and blamed the slumping economy.

"If we've had to dip into [reserves], it's been very minor," he said.

The recession has decreased sales tax revenue and businesses closing, including the Bluebird bus factory, have reduced the utility income. Still, he said he couldn't attribute the shortfall to any one factor, but praised the city staff for getting the numbers as close as they were.

"We're just glad that we're able to maintain our current employees and provide the necessary services that we need to do," Florence said.

Contact staff writer Andy Johns at ajohns@timesfreepress.com or call 423-757-6324.

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