HOULTON, Maine — Two and a half years after the town was told by its auditor to rebuild its surplus fund, a mid-year review of the community’s finances has determined that it has more than doubled the amount of money it once had in the account.
“It has been a very good year for the town of Houlton,” Town Manager Butch Asselin said last Wednesday, reflecting on the results of the 2015 mid-year review of municipal financial statements that were presented by Ron Smith, managing partner for the town’s auditing firm, RHR Smith and Co. of Buxton. Smith talked to the Town Council about the finances during its Oct. 13 meeting.
During the gathering, Smith told councilors that the town had $958,000 in its surplus account, compared to $473,780 when he issued them a warning to build up the account at the end of December 2012.
Smith also praised town officials during last week’s meeting for “putting the town in a good position” midway through the fiscal year.
Smith has always advised the council to keep enough money in the surplus fund to run the town for up to 90 days in case of emergencies, such as when revenues are not coming in and bills still need to be paid.
Back in December 2012, however, the town only had $473,780 in the municipal surplus account — enough to run the town for about a month — because it had been dipping into the account in prior years to offset taxation and hold or lower the tax rate. By doing so, the town had decreased the amount of money in the account.
But Asselin said Wednesday that the town had seen an increase in revenues over the past years, and had allowed the account to grow by not taking money out of it. He also said that the town saw an increase in revenue from fuel sales at Houlton International Airport over the past year, and saw an increase in savings in employee medical insurance due to contract negotiations.
Smith told councilors that the town was now “in a position to grow surplus even more.” Asselin said that in the past, Smith has urged the town to have approximately $1.2 million in surplus, which he said Wednesday the town will continue to keep aiming for.
