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Audit shows large unassigned fund balance; council debates purchases of arrow boards, light tower and chainsaws
Summary
The town auditor reported an unqualified audit for the year ended June 30, 2024, noting the town's unassigned fund balance is about 114% of annual expenses and prior-year revenues were higher largely because of ARPA funds; the council considered three capital purchases from reserved fund balances (arrow boards, light tower, chainsaws).
The Ranlo Town Council on Tuesday reviewed the annual audit and monthly financial report and heard proposals to appropriate reserved fund balances for three small capital purchases intended for public-safety and storm-response use.
A finance presenter (auditor) told the council the audit for the year ended June 30, 2024, yielded an unqualified (clean) opinion. The presenter said revenues were higher in the prior year largely because the town recognized American Rescue Plan Act (ARPA) funds last year; comparing the two years, the presenter described a roughly $560,000 change in the bottom line between the years and said the town's unassigned fund balance is approximately 114% of the town's current-year expenses. The auditor also noted routine performance indicators from the state treasurer's Local Government Commission (LGC) and said staff would submit a written response to recurring LGC items, as was done previously.
On utilities, the auditor warned that the wastewater lift station is aging and will likely require more maintenance or eventual replacement; the presenter urged council members to consider that when setting future rates. He also noted that certain funds (for example stormwater) are restricted to specific uses and that capital-project reimbursements from the state have not yet been fully remitted.
Separately, the council considered three capital requests to be funded from reserved/pavement fund balances rather than general operating funds: two arrow boards for traffic control, one mobile light tower for nighttime work and replacement chainsaws for storm response. Speaker 5 said arrow boards and a light tower would improve nighttime safety and reduce the town's need to borrow equipment from other jurisdictions. Speaker 4 moved to appropriate funds for the arrow boards; the transcript did not include a recorded vote or final tally for the motions.
The town manager and staff agreed to gather vendor availability and finalize dates for community events discussed later in the meeting. The council also heard a public-safety announcement: town hall would close at noon the following day because of a winter-storm warning, while emergency operations would continue to run from the fire station.
No ordinance or permanent policy change was adopted in the transcribed portion; council members directed staff to provide follow-up details on procurement and on the LGC response.
