The Village of Cambridge drew down its reserves in 2018 but still ended the year with a “healthy” amount of “cash on hand to pay your bills,” an auditor told the Village Board Sept. 10.
The village began 2018 with about $411,000 in the fund balance of its general fund – the amount left in reserves after all expenses were paid. It ended the year with about $375,000, Paul Frantz, a partner and CPA with Baker Tilly Virchow Krause, of Milwaukee, told the Village Board.
Frantz also however — removing from the equation about $28,000 of fund balance the village isn’t now at liberty to spend – that a key fund balance indicator is in good shape. He said the village’s year-end unassigned fund balance was about $347,000, or about 33 percent of its 2018 total general spending budget of $1.05 million. That’s better than the generally recommended range of 10-25 percent, Frantz said.
Frantz walked through a 6-page summary of the village’s recent audit with the board, as it gets set to begin working this fall on the 2020 village budget.
Among the other highlights of the audit report:
- While the stormwater and water utilities ended 2018 in the black, the sewer utility ran a $106,000 operating deficit with about $902,000 in revenues and about $1 million in expenses.
- The village currently has about $5.1 milion in outstanding general obligation debt. State statutes limit it to about $8.1 million in total debt, or 5 percent of the village’s equalized property value. So, the village currently is at about 63 percent of its statutory debt limit.
The audit report noted some weaknesses in internal financial controls in the village office. However, Frantz credited Village Administrator Lisa Moen and Deputy Administator Barbara Goeckner for running a good financial operation. Moen was promoted to her current position in October 2018 and Goeckner was hired after that.
“We received nothing but cooperation from Lisa and Barb. I’m happy from where we sit tonight. I think you have two wonderful individuals in management…two great people here who understand what they need to do,” Frantz said.