In the closing days of December 2018, the auditors contracted by the Town of Waterford delivered the completed audit for fiscal year 2018 that ended on June 30, 2018. Along with the audit were the single audit reports for the federal and state funds granted to the town during the same period.

You may wonder why the audit report was received six months after the end of the fiscal year. Although the fiscal year ended on June 30, 2018, the town did not close the books on the fiscal year until the end of August 2018. After the books were officially closed, the auditors could get to work reviewing the information provided by the town regarding the finances in the fiscal year. State statutes require that the audit report be provided to the town by Dec. 31.

The town’s total revenues, both governmental and business-type activities (Utility Commission), in FY2018 were $110.6 million, and the total expenses were $110.4 million. Roughly 82.2 percent of the revenues were derived from property taxes, 14 percent from operating and capital grants and contributions, 3.1 percent from fees for services, and 0.7 percent from investments and other revenues.

The general fund finished the year with a fund balance of $14.8 million. The funds available for appropriation were about $823,400 more than anticipated for the General Fund. There was an additional appropriation of about $693,100 early in the fiscal year to close out the capital project funds for the elementary schools. Unused appropriations of about $792,600 were returned to fund balance at the end of the fiscal year. The year’s operations increased the general fund balance by about $922,900.

Total federal revenues to the town for FY2018 were about $2.58 million, up from the $1.48 million received in the previous fiscal year. The largest federal award was $1,149,749 from U.S. Department of Transportation for highway planning and construction that funded the rebuilding of the Jordan Cove Bridge that was damaged during Super Storm Sandy.

Total state revenues to the town for FY2018 were about $2.49 million, down from about $4.83 million in FY2017. The large amount in FY2017 was due to school construction grants for the high school.

Total property taxes received in FY2018 were about $87.83 million compared to about $86.17 million received in FY2017. The total revenue for government activities in FY2018 were about $106.97 million, and the total expenses were about $104.63 million. However, the taxpayer only had a financial burden of about $86.72 million due to the revenues generated by the fees for services and grants applied for by the various town departments.

The town’s only business type activity is the Utility Commission that operates from the Enterprise Fund. The fund revenues for FY2018 were about $3.69 million, and expenses were about $5.74 million. The loss of about $2.11 million in FY2018 is on top of a loss of about $1.22 million in FY2017. If the current fiscal year is also tracking for loss, it is possible that the Utility Commission may be asking the Representative Town Meeting for a rate increase for FY2020.

At the end of FY2018, the governmental activities capital assets were determined to be about $249.14 million after depreciation, and the Enterprise Fund capital assets after depreciation were determined to be about $50.97 million. The depreciation expense for governmental activities was about $9.72 million, and for the Enterprise fund the depreciation expense was $2.11 million.

The town’s long term debt at the end of FY2018 was $74.5 million of outstanding general obligation bonds that funded the recent school construction. The current debt limitation by state statute is $603.2 million. The town has an AA bond rating from Standard and Poors.

Besides the bond debt, other long term liabilities that were not due or payable in FY2018 are a net pension liability of about $14.26 million, compensated absences of about $7.09 million, and a net other post employment benefit of about $20.72 million.

Due to changes in reporting requirements that were implemented in the FY2018 audit report, there is extensive information on retirement and OPEB liabilities. For example, the actuarially determined contribution for OPEB was $2,474,700, but the town actual contribution was only $1,906,707.

The Internal Service Fund, which pays for the health insurance for Waterford, had a $4.9 million balance at the end of FY2018. This was an increase of $255,300 from FY2017. The fund had $11.2 million in contribution for FY2018 and expenses of $11 million for claims and program administration.

There is a great deal more information in the audit, including detailed explanation of the Municipal Employees Retirement System and the Teachers’ Retirement System, and the OPEB Trust Fund. The FY2018 Audit Report is posted on the town website (waterfordct.org) under the Finance Department reports.

John W. “Bill” Sheehan is a former Democratic Town Committee chairman.