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Rushford Village accepts clean 2024 audit; auditor urges sewer-rate review
Summary
Auditor Bill Sherry presented a clean 2024 opinion and summarized fiscal changes: General Fund net increase about $100,000, water fund roughly $14,000 surplus, sewer fund a persistent ~$13,000 annual deficit. Sherry recommended the council consider a sewer-rate review to address the deficit.
Rushford Village accepted its 2024 audit at the July 1 council meeting after a presentation by auditor Bill Sherry of Engelson & Associates, who gave the city a clean opinion and highlighted a mix of one-time and recurring fiscal factors.
Sherry told the council the city received a clean opinion with no significant new findings beyond recurring small-city issues: limited segregation of duties because of a small office staff and reliance on the auditor to prepare financial statements. "These are typical findings for small cities and businesses," he said. He reported that the General Fund ran roughly $100,000 in revenue over expenses, boosting cash and investments by about $100,000 compared with the prior year. Property tax revenue increased by about $25,000 year-over-year.
On utilities, Sherry said the water fund showed approximately a $14,000 surplus for the year and appears to be covering current expenses, while the sewer fund continues to operate at about a $13,000 deficit that has persisted for several years. "Sherry suggests bumping the rates up because we are not making enough to pay all the bills and we are not funding anything for future repairs," the minutes record. He recommended the city compare rates with neighboring towns and consider an annual adjustment in the 3%–4% range or conduct a formal sewer-rate study; Mayor Overland suggested pursuing a sewer-rate study and Clerk Mary Miner suggested contacting Mike Bubany for guidance.
Sherry also summarized debt and liabilities: general fund debt was reduced by about $99,000 to a balance of $524,000; the water fund carries approximately $134,000 in debt and the sewer fund about $46,000; the state pension (PERA) liability was about $64,000 for the year. The council approved the audit on a motion by Robert Hart, seconded by Mike Ebner.
The council did not take immediate rate action at the meeting but directed staff to consider Sherry's recommendations and to discuss next steps, with the possibility of conducting a formal rate study or benchmarking sewer rates against neighboring cities.
