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Finance director reports strong collections; board asks about large reserve balance
Summary
Finance director Lawson presented the May financial report showing general fund revenues and key collection percentages and said the town’s unrestricted cash-on-hand was sizable (estimated reserves 58–62%); the report included sales, permit and utility highlights and previewed upcoming franchise and FEMA receipts.
At the June 9 work session, Lawson presented the town’s monthly financial report through May, highlighting general fund collections and capital fund activity.
Lawson reported general fund revenues of $14,642,000 and expenditures of $13,136,000 through May and said the town had collected approximately 98.72% of budgeted revenue to date. Highlights included building permit revenue at 171.22% of budget ($556,471) and system development fees for water and sewer at 252.42% of budget. Lawson also said the town had received FEMA-related revenue of about $186,000 and that additional sales tax and franchise payments were expected over the coming months.
When board members asked about reserves, Lawson estimated the town had "about 58 to 62%" of fund balance in reserve and clarified that the state offers informal guidance (roughly one month) but does not prescribe formal reserves. Lawson flagged that some funds are restricted while others remain available for general use.
Note on reported math: Lawson described a "net income a little over $5,000,000" in the report; the arithmetic from the figures quoted in the meeting (revenues of $14,642,000 minus expenditures of $13,136,000) suggests a smaller difference. The board did not request a reconciliation during the work session; staff follow-up to reconcile reporting numbers is advisable.
