SHARON '02 audit shows deficit but big improvements

The city showed progress in whittling away at an on-going budget deficit.
SHARON, Pa. -- The bad news is that the city ended 2002 $72,895 in the red.
The good news is that's a lot better than last year.
There were no reportable conditions or audit findings in the review of the city's books for 2002, said John Mastrian of the auditing firm of Black, Bashor and Porsch.
Mastrian presented the audit report to city council Thursday, noting that the city improved its financial position substantially during the course of the year.
Sharon thought it had ended 2001 with $75,000 in cash on hand to begin the 2002 fiscal year.
However, an audit of 2001 spending showed that the city was actually $164,000 in the red instead. That red ink, coupled with the $75,000 that didn't exist, left a gaping $239,000 hole in the revenue side of the budget at the beginning of 2002, Mastrian said.
The city did a good job of eliminating a major portion of that by controlling spending throughout the year, ending with a $72,895 deficit, he said.
Congratulations given
Council members George Gulla and Chris Outrakis offered their congratulations to Mayor David O. Ryan for the improved audit report for 2002, Ryan's first year in office.
The city actually spent about 5 percent less than anticipated for the year, according to the audit.
The budget projected expenditures at $7,958,829, but the city spent $7,572,045, a difference of $386,000.
Unfortunately revenues came in nearly 6 percent less than expected.
The budget had projected revenues at $7,960,708, but the city actually took in only $7,499,150, a difference of about $460,000.
Mastrian said Sharon's financial picture was helped by a $430,000 increase in real estate tax receipts due primarily to a 3.5-mill property tax increase that generated $350,000 in new revenue.