Audit: Houlton’s fiscal future looks bright

HOULTON – While the level of cash in the surplus fund balance has decreased, the city’s fiscal future is still looking bright, a representative from the town’s auditing firm said.

Councilors received a report on the town’s fiscal health as they reviewed the results of the municipality’s 2005 annual audit last week. The bookkeeping verification was conducted by RHR Smith & Co. of Buxton.

Ron Smith, a representative from the firm, told panelists that the town had $1.2 million in its surplus account as of Dec. 31, 2005. The amount is down approximately $180,000 over last year.

The money in the surplus account is not designated for any purpose, but councilors have been withdrawing from the account in the last few years to offset taxation and lower the mill rate.

Last fall, councilors opted to take $500,000 from the account to lower the tax rate, and later removed another $104,000 from the fund to repair the leaky hangar roof at Houlton International Airport.

Despite that withdrawal, Smith speculated that officials would again be able to use surplus money to help ease the tax burden.

“I think there will be something there for you to use again for the 2007 budget,” he said at the meeting, adding that he would be working with the town in the coming months to craft next year’s fiscal forecast.

Council Chairman Paul Romanelli said that he was pleased with the results of the audit.

“We had a very strong audit,” he noted. “I find nothing in it that causes me any concern.”

The board voted unanimously to accept the financial report.