Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Ranlo audit shows $1.5 million surplus and strong reserves, flags aging water assets
Summary
The town's auditor reported an approximate $1.5 million general-fund surplus and an unrestricted cash position near $5.3 million, while warning that depreciated water and sewer assets are below the state's 50% threshold and will require future capital work.
The Ranlo Board of Commissioners received the town's annual financial audit and management discussion from auditor Edin Carris, who presented year-end figures and a state treasurer's alert about aging capital assets.
"Bottom line, revenues over expenditures $1,500,000 as dispatched here as far as the general fund is concerned," Carris told the board, summarizing the audit's headline result. He said total revenues and transfers rose in part because of increased local-option sales tax and grant receipts, and that the town realized gains in several grant-funded capital accounts.
Carris reported an unrestricted cash position of roughly $5.3 million at year end and said the town's unassigned fund balance equaled about 143% of annual expenditures, well above the approximate state average of 65%. He cautioned, however, that a single large street project could quickly draw down those reserves.
On capital-asset condition, Carris cautioned the board that the State Treasurer's matrix flags water and sewer capital assets when depreciated values fall below 50% of original cost. "Y'all are actually at 40% of your original cost," he said, noting that the condition ratio signals forthcoming repairs and replacements that the town should plan for.
The auditor explained that some funds are restricted by their grant or state source and are not available for general use; he cited Powell Bill funds (for streets) and other restricted capital accounts and noted a Powell Bill balance of about $704,000. Carris advised the board members to review the audit and to sign any required responses to the State Treasurer's office where indicators of concern were noted.
Board members asked clarifying questions about which account balances were restricted and how the state's matrix is applied. Carris said officials would need to prepare and sign a response to any state request for information and continue tracking asset condition to budget for future replacements.
