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Ranlo faces shrinking fund balance; council considers utility‑rate hikes and LGC review to fund road and water repairs
Summary
Council discussion and public comments revealed Ranlo’s unrestricted fund balance fell from roughly $2,000,000 in 2017 to about $500,000 now; staff proposed utility‑rate increases and emphasized the Local Government Commission (LGC) must approve large borrowing while residents asked the town to fund up to $1.5M in road repairs.
Ranlo officials and residents spent substantial time on the town’s finances during a public hearing on the recodification package and the second draft of the fiscal year 2022 budget.
Presenter (Speaker 1) told the council that after recent audits and a forensic review of past budgets the town’s unrestricted fund balance has fallen “from approximately $2,000,000 in 2017 to around $500,000” now, and that the Local Government Commission (LGC) will require a financial plan before approving any significant borrowing. “They said until we had a plan of how we were going to pay for it,” Presenter (Speaker 1) said, describing the LGC’s position.
Residents emphasized urgent repair needs. Board member (Speaker 2) said the roads in Mountain View Development were signed off as complete despite poor workmanship and argued the town needs about $1,500,000 to fix them because they are “dangerous, hazardous.” The presenter acknowledged road and water infrastructure failures and said the utility fund has been strained by repeated emergency repairs (Presenter (Speaker 1) cited recent sewer breaks on Rex Avenue).
Budget details discussed included a holdover $25,000 line item for a police vehicle, rising fuel costs for public‑works and police vehicles (estimates in the meeting ranged from about $30,000 to $36,000), and an estimate that adjusting commercial utility rates could generate roughly $1,515,000 in additional revenue. Presenter (Speaker 1) also said arrears present a collection risk — the transcript mentions accounts owing roughly $40,000–$54,000 — and modeled rate scenarios that showed a 10¢–15¢ increase in utility charges would help generate the revenue the town needs.
Presenter (Speaker 1) said the draft budget projects a possible $276,000 increase in fund balance if everything goes perfectly, but warned that the projection depends on collections and no unforeseen breaks. He also said that if the utility fund remains deficient the town could consider loaning money from the general fund to the utility fund, though that would be complex and would require oversight and appropriate approvals.
What happens next: staff said they will seek to present a payment plan to the LGC and bring the final budget forward for adoption in June; the presenter mentioned a formal hearing before the board on June 1 as part of the LGC process. Residents urged staff and council to prioritize repairs while minimizing tax impacts.
