Sale of lots a ‘windfall’ for town’s general fund, but it’s nearing an end

The annual audit of the Town of Greybull’s financial statements showed across-the-board strength, with a general fund reserve that exceeds recommendations and water, sewer and sanitation rates deemed adequate to fund those enterprise funds.

James Seckman, of Seckman & Thomas CPAs in Powell, presented his findings at Monday’s night meeting at Town Hall.   He gave the desired “clean or unqualified opinion” as to whether the town’s financial statements and related notes were in accordance with accounting principles generally accepted in the United States and found no material weaknesses or deficiencies in internal controls or instances of noncompliance with laws, contracts, grant and loan agreements, state statutes and IRS requirement.

The audit also assessed the reasonableness of the town’s cash reserves. 

The general fund reserves grew by $335,000, coming in at $1.44 million, the equivalent of 1.2 times or 14.4 months of general fund operating expense.

“We like to see that between six to 12 months,” said Seckman. “You’re above that threshold.”

He attributed the increase to the sale of town lots, which he described as a “windfall” for the town. But with just a few remaining to sell — estimates ranged from seven to nine at the meeting — the town is “coming to the end of that.”

Seckman also provided an overview of the water, sewer and sanitation fund reserves, reporting:

• The water fund reserve was $1.87 million, the equivalent of 21.4 months of annual water fund operating expenses ($1.04 million).   The recommended reserve is 12 to 36 months.

• The wastewater fund reserve was $453,000, the equivalent of 12 months of operating expenses ($440,030). The recommendation is 12 to 36 months.

• The sanitation fund reserve was $490,000, the equivalent of 16 months of operating expenses ($367,410).  Seckman said the recommendation is to have enough money to replace sanitation trucks and garbage containers when those needs arise. 

Seckman said the town’s water, sewer and sanitation rates as well as its water and sanitation reserves are all adequate.  His only concern was the wastewater fund reserve, which he described as “low, but increasing.”

As noted, it stood at $453,000, with $96,303 in gains.  “We’d like to see that around $800,000,” he said. “But if we continue to gain $100,000 a year, the town wouldn’t be that far (from reaching that goal).”‘