Town CPA presents clean audit but warns water fund shortfall; board approves state filing

Joe Williams, the town’s CPA, presented the annual audit for the fiscal year ended June 30, 2025, saying auditors issued an unmodified (clean) opinion but identified a single finding: the water enterprise fund’s actual expenditures exceeded the adopted budget by $41,476, a condition that must be reported to the state.

Williams summarized the consolidated financials, stating total combined assets and noting a positive net change overall, but he warned that operating revenues for the governmental funds would have shown a loss if not for the sale of a parcel that produced $145,000 proceeds and an interfund transfer. He described the town’s principal revenue sources—property taxes (approximately $64,000), sales taxes (about $112,000) and falls/charges (~$600,000)—and urged the board to either increase revenues or reduce operating expenditures to avoid future structural deficits.

Board members asked whether specific savings were visible. Williams said the town is generally lean and that rising costs rather than wasteful spending are the primary driver of the gap. He noted options such as revisiting impact fees, transportation/stormwater plans that enable user fees, and careful review of shared expense allocations.

The board moved and voted to approve the state audit so it can be posted with state authorities before month end. Speakers also discussed next steps for the enterprise fund: refine shared-expense allocations, revisit water rates, and use budget augmentation or fund balance if immediate work is required.

Next steps: the town will file the audit with the state, the finance officer and CPA will continue refining enterprise fund budgeting and will revisit shared-expense allocation during the next budget cycle.