HOLLY SPRINGS — Officials in Holly Springs say an accounting error – one that omitted more than $1.2 million in property taxes – led to an incorrect budget report.

A recent financial update showed that the town, one of the few Wake County towns to grow its budget last year, faced a shortfall of $40,931 at the end of December. The errant numbers, presented to town officials last month, made it appear as though the growing town had its first deficit since at least 2005.

But on Friday, the town said that a weekly bank deposit of property tax payments had not been reflected in the report, deflating the actual amount of revenue collections.

The revised numbers show that the town was $1.2 million in the black as of Dec. 31. The town had $2.2 million in revenues over expenders on Jan. 31, according to the town. “At the end of the day, the town has been and remains in strong financial health,” Drew Holland, the town's finance director, said Friday in a prepared statement.

Holland is scheduled to present a summary of the town's financial standing at a Feb. 16 town council meeting.