DECEMBER 22, 2011 ISSUE
Watauga County’s Debt Falls Nearly 7 Percent
Bryce Holder, CPA, of the accounting firm Bryce Holder & Associates presented Watauga County’s 2010-11 fiscal year financial audit to the Watauga County Commissioners on Tuesday evening. The fiscal year ended June 30.
Watauga County Manager Deron Geouque stated in the meeting’s board packet, “A preliminary review indicates that [Watauga] County has had a good year, especially in light of the current economic conditions.”
The audit reveals that Watauga County’s total debt principal decreased by $5,340,639, or 6.7 percent, this fiscal year to $73,896,581 due to debt service payments, and Watauga County maintained its AA bond rating by Standard and Poor’s, indicating a sound financial condition. The debt principal is well below the county’s legal debt limit of $695,987,281, which is determined by the State of North Carolina limiting the amount of debt the government can issue to 8 percent of the total assessed value of taxable property located within the county’s boundaries.
The county’s assets exceeded liabilities by $110,806,926, increasing by $1,117,174 over last year due to an increase in revenues and less expenditures. The county’s unassigned fund balance for the General Fund, which is the chief operating fund of the county, was $11,880,356 at the end of the fiscal year, representing 25.63 percent of total General Fund expenditures. Holder said the state average was a “little over” 25 percent, so the county was “well within range.”
The collection rate for property taxes dropped a quarter of one percent from 97.42 percent in last fiscal year to 97.21 percent this fiscal year. The current figure is barely higher than last year’s statewide collection totals and is one percent higher than last year’s average collection rate for counties with a population between 50,000 and 99,000.
Holder summed up his presentation before the board with, “The county is in real good shape—maintained tax collection and tightened its budget.”
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