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Audit: Trenton posted modest surplus but leaders warn of aging water infrastructure
Summary
An auditor presented Trenton's annual financial statements and a fraud‑risk assessment showing the town in the "low" to "moderate" risk band; officials noted a healthy general fund surplus but flagged the water system and one aging tank as priorities for near‑term capital work.
A local CPA presented Trenton's annual financial statements, a state‑required fraud risk assessment and agreed‑upon procedures to the council, reporting that the town ended the year with stronger than expected reserves but with an aging water system that may require major investment.
Financial highlights, as reported by the presenter: general fund revenues were roughly $682,000 against expenditures of about $589,000, producing an increase in the general fund surplus of about $92,000 and a general fund ending surplus of approximately $652,000. The capital projects fund also reported a small positive addition to reserves. The water utility used some surplus during the year but had about $250,000 (quarter‑million) in cash reserves; depreciation and debt service remain substantial line items for the utility.
On governance, the CPA said the town scored roughly 315 out of 395 on the state fraud‑risk assessment, placing it near the top of the "moderate" risk category and within one point of the low‑risk band; adding staff signatures on an ethical behavior statement would move the town into the low band. "You do have these policies," the auditor said, noting procurement, conflict‑of‑interest and records policies that reduce risk.
Council members pressed on the water system. The CPA and water staff discussed that one of Trenton's water tanks is aging and could require replacement or major repair; councilors were advised that a replacement would be a multi‑year, high‑cost investment and that the town's reserves should be managed carefully to ensure funds are available when needed. The council discussed regional water planning and an interconnect/impact study that may expand grant eligibility for larger intermunicipal projects.
Why it matters: Strong operating surpluses give Trenton flexibility, but aging water infrastructure is a high‑priority capital need with potentially large costs that may require loans, grants or phased replacement plans.
Next steps: The CPA offered to provide the council with a revised fraud‑risk form reflecting signed ethical statements; staff will continue work on water planning and pursue available grant and interconnect funding options. Council members requested a subsequent meeting to review detailed water‑project timetables and funding scenarios.
