Windsor projects $230,000 midyear surplus; water fund shows steady collections but depreciation affects accounting

Town officials told Windsor’s council on Feb. 10 that the town’s fiscal position through the first half of FY2025-26 appears sound but is affected by timing lags on several revenue sources.

Town Manager William Saunders and Treasurer Cheryl McClanahan reviewed six-month figures and explained how receipt timing — for example, sales and meals taxes reported on lagged schedules and real-estate tax rollbacks — creates apparent variances in midyear reports. McClanahan reported meals-tax receipts of $143,260 for the last quarter and that personal-property collections are roughly 72–79% collected to date. Saunders said staff project a roughly $230,000 surplus for the year but cautioned that inflation and timing could reduce that amount.

On the water fund, Saunders said water sales revenue for the six-month period is about 52.4% of the budgeted amount and six-month water expenditures are about 39.3%. He noted a system depreciation entry ($82,220) affects the appearance of a year-to-date loss though operating revenue should cover ongoing costs, maintenance and debt service. Councilman Walter Bernacki asked about application timing for tap fees from new subdivisions (Windsor Station); Saunders said fees are charged at building-permit time and applied to the fiscal year in which they are collected.

Council also approved two municipal items affecting town finances: a DEQ recycling grant of $2,561.69 will offset the $3,745 Bay Disposal quote for two special-refuse pickups, leaving a town share of $1,189.31 (motion #8); and Council appropriated a Virginia Department of Fire Programs mini-grant of $9,427.65 (motion #10).