LANCASTER—The county is in good financial shape according to an independent audit report of the fiscal year ending June 30, 2009. Revenue increased while expenses stayed relatively flat, a result of advance planning by county officials that made up for losses of nearly $1.7 million in funding for education and other programs.

The report, released last week by Robinson, Farmer, Cox Associates of Richmond, showed the county finished the year with general fund revenue of $23.167 million and expenditures of $22.391 million, leaving a positive balance of $776,000.

Local merchants suffered in 2009 and sales tax revenue decreased nearly 10 percent or $155,000.

Housing reassessments offset the losses, increasing 20 percent and yielding an additional $2.1 million. The county gained an additional 7 percent or $100,000 in personal property taxes, including vehicle license fees.

Total revenue increased $1.687 million or 8 percent over 2008, leading to a healthier general fund balance of $3.47 million versus $1.58 million a year earlier.

The report showed decreased spending in every department over 2008, including education. While a change in the composite index increased the county’s share of the school budget from $9 million in 2008 to $10.2 million for 2009, school officials cut costs and increased efficiencies to end the year below budget at $9.8 million.

The sheriff’s department, including law enforcement and the jail, cut year-to-year spending by some $60,000, but still exceeded the department’s budget by $56,516.

In addition, the county lost nearly $0.5 million, or 8 percent, in combined federal and state support. However, property reassessments and cuts in spending seemed to stabilize the county’s finances.

Supervisor Butch Jenkins speculated some of the savings were a result of department heads “adjusting as much as possible” to reductions in state funds. But he also pointed to the work of assistant county administrator Jack Larson who monitors the budget process.

“One thing that doesn’t get talked about is the weekly talks between Jack and (school finance director) Sue Salg,” he said. The school and county have improved their working relationship, in part, because of their good communication, he noted.

Jenkins and county administrator Bill Pennell credited Larson with working closely with all county departments, collecting and analyzing data for them, and monitoring and obtaining state reimbursements for the county in a timely fashion.

While Jenkins admitted he usually is against anything that increases the budget, he noted the addition of the assistant county administrator position to monitor the county budget “is starting to save us money and...will pay for itself. It is money spent wisely.”