File Photo 

Municipality and utilities on solid ground according to review by PKS and Co.

By Cindy Hoffman, Staff Writer

(Dec. 14, 2023) The accounting firm PKS and Company presented the results of its draft audit for Fiscal Year 2023 for the Town of Berlin on Monday night at the mayor and council meeting.

The results of its examination indicate that the current total assets for the entire Town of Berlin are valued at $68.5 million with total liabilities at $17.5 million. The total net for fiscal 2023 is $47 million.

Total revenues for the town were $8.7 million.

The town receives 51 percent of its general fund revenues from property taxes, 21 percent intergovernmental revenues and the rest from other revenue, including licenses and permits, impact fees, service charges and other taxes.

General fund revenues increased $1 million over the prior year, according to the audit, and total expenditures were $6.6 million.

The town continues to put public safety first in its expenditures, with 39 percent dedicated to public safety, 23 percent general government, 17 percent public works, 9 percent capital outlay, 7 percent planning and development, 4 percent debt service and 1 percent to recreation and parks.

General fund expenditures increased from the prior year by $467,000. The increase is a combination of increased outlays for public safety, public works, and capital expenditures.

 At the end of the year, the general fund had a fund balance of $9.9 million.

An unassigned fund balance of $3 million is the amount set aside for future purposes and is available for emergencies. The unassigned fund balance represents six months of operating expenses. Total unrestricted fund balances were $8.3 million and represents 15.4 months of operating expenses.

The Town of Berlin operates four utilities and accounts for their activities in separate enterprise funds, which are accounts independent of the general fund. The utilities are electric, water, sewer, and stormwater.

For the year ended June 30, the funds had an increase in net position of $3 million (prior to contributions). Capital contributions from special connection fees were $430,000 for the year resulting in an increase in net position of $3.5 million.

The Electric Fund had an operating income of $811,000 compared to an operating income of $317,000 last year. Its net position as of June 30, 2023 was $5.6 million, an increase of $682,000.

Service charges increased 9 percent from last year.

Operating expenses increased from last year by 1 percent primarily because of personnel costs.

The Water Fund had an operating loss of $48,000 and a total increase in net position (before special connection fees) of $1.2 million compared to a net decrease last year of $64,215.

The water fund received a federal ARPA, or American Recovery Plan Act, grant of $1.1 million during the year.

Service charge revenues increased by 5 percent and operating expenses increased by 6 percent. Expenses increased primarily due to changes in supplies and operating expenses.

The Sewer Fund had an operating income of $747,000 and a total increase in net position (before special connection fees) of $957,000 compared to an increase in net position last year of $578,000.

Special connection fees of $258,000 increased the overall change in net position to $1.2 million.

Operating revenues increased 19 percent and operating expenses increased $197,000 due to increases in personnel, supplies and operating, repairs and maintenance, and general overhead expenses.

The Stormwater Fund had an operating income of $10,000 compared to a loss in the prior year of $88,995.

Actual revenues exceeded the amount budgeted by $366,000 due to favorable variances in taxes, licenses and permits, service charges, and earnings on investments.

Actual expenditures were less than the amount budgeted by $1.9 million.