HOULTON, Maine – A 2023 audit of the Town of Houlton finances received the highest unmodified opinion from auditors, RHR Smith & Co. of Buxton.
“Financially, one year ago you guys ended the year with a carryover balance of about $2.1 million. That carryover balance rose to about $2.8 million on December 31, an increase of about $700,000,” Ron Smith, managing partner for RHR Smith & Company told the town council via Zoom, last Monday night.
The increase came in part from favorable ambulance revenues, stabilization payments from the state, and the town returning about $500,000 in expenses to the bottomline from unspent budget line items, according to Smith.
The state stabilization money was $300,000 more than anticipated, he said.
Financially, the town’s general fund is healthy, Smith said, adding that the fund balance is hovering right where they like it to be.
Getting more money into the capital project fund is an area that needs attention, he added.
“You’ve got about $600,000 set aside for various capital projects and I think that number is a little light and probably something that you could certainly work on,” he said, suggesting the town take a deeper look at the capital reserve plan.
During last week’s town council meeting, Councilor Eileen McLaughlin asked Smith if he had reviewed the town’s five-year capital plan.
According to Smith, he has seen the plan and the town will not have enough money to complete the projects without increasing that fund.
“You might consider moving some of your reserve fund into your capital plan so the money lines up with the plan,” he said.
