Walstonburg Commissioners Hear Audit Report, Discuss Tree Removal and Zoning Violations
Redman reported an unmodified opinion on the financial statements, meaning that there were no material findings to report.
Derek Burress
Apr 07, 2026
The Walstonburg Board of Commissioners met on Tuesday, April 7th, at Town Hall. Commissioner Jarrod McKeel was absent.
Audit Report
Greg Redman of Gregory T. Redman, CPA, presented the town’s annual audit report. Because the town received more than $1 million in federal funds during the fiscal year, the audit was classified as a single audit. Redman explained that the designation required additional compliance work on his end, but did not change anything for the town operationally.
Redman reported an unmodified opinion on the financial statements, meaning that there were no material findings to report. He told the board the financial statements were presented fairly in conformance with generally accepted accounting principles, which he described as the best outcome possible.
General Fund
The general fund was in strong shape as of June 30. Cash in the bank stood at $412,000, with restricted cash of $44,000 set aside for power bills. The unrestricted fund balance came in at $386,000, representing approximately 140 percent of annual expenditures. The state recommends municipalities maintain at least 70 percent, so the town was well above that threshold.
Revenues for the general fund totaled $272,000 against expenditures of $228,000, producing a surplus of $44,000. Both figures compared favorably to the budget. The town had budgeted to receive $250,000 in revenues and actually collected $273,000. On the spending side, the board had budgeted $256,000 and spent only $228,000, meaning revenues came in over budget while expenditures came in under budget.
Electric Fund
The electric fund showed $626,000 in cash with no debt. The unrestricted fund balance stood at $762,000. Operating income for the electric fund was $31,000, meaning revenues exceeded expenses. Net cash increased by $72,000 during the fiscal year.
Water and Sewer Fund
The water and sewer fund carried $130,000 in debt to DEQ. Redman noted that the figure is modest compared to many small towns across the state, several of which he said he had to report to the Local Government Commission this year because their revenues were not covering expenses and debt obligations.
The water and sewer fund showed an operating loss of $27,000 on paper, but Redman noted that depreciation of $77,000 is included in that figure. Backing out depreciation, the fund is effectively generating approximately $50,000 before debt payments, which he said satisfies the LGC’s calculation method. Net cash in the water and sewer fund increased by $59,000 during the fiscal year.
Debt
The town’s only debt is a non-interest-bearing loan with annual payments of $8,600. Redman said there was no financial reason to pay it off early since no interest is accruing.
Property Taxes
Property tax collections came in at 99.09 percent, which Redman described as a strong collection rate. He noted it helps that the county handles collections on behalf of the town.
Capital Assets
The town’s water and sewer capital assets condition ratio currently stands at 42.81 percent, below the recommended 50 percent threshold. Redman explained that the ongoing water project improvements are currently classified as construction in progress because the work was not complete as of June 30, and assets under construction are not counted in the ratio until the project is finished.
Once the work is completed and added to the asset base, the ratio is expected to climb above 50 percent. The town currently has $2 million in assets and $1.4 million in accumulated depreciation. When approximately $2 million in new assets from the completed projects are added, total assets will reach roughly $4 million, pushing the ratio well above the benchmark.
Grant Funds
The audit also covered several grant-funded projects. A water and sewer AIA grant totaled $968,000 received and spent. An IMI remediation project accounted for $128,000. A stormwater grant totaled $47,000, all paid to the engineer. A lead service project drew down $40,000, also paid to the engineer. An additional water and sewer AIA grant totaled $97,000 in engineering costs. Combined federal receipts and expenditures reported in the audit totaled $1.195 million.
Single Audit Findings
Because of the single audit requirement, two items that Redman said he had previously communicated informally now had to be formally documented in the report. The first is segregation of duties, a common finding in small towns where one person handles multiple financial functions. The second is preparation of financial statements, which Redman said he prepares for the town, as he does for roughly 25 other municipalities he audits. He emphasized these are not new issues and do not reflect any wrongdoing, but the single audit format required him to spell them out in writing.
The federal grant compliance report also came back with an unmodified opinion, meaning there were no findings related to how federal funds were spent.
Ongoing Projects
Town Administrator Bess Patton noted the town has several active infrastructure projects underway. Phase one of the water project has been completed. Phase two, covering the other side of town, is currently in engineering. The town is also planning to rehabilitate lift station one and a portion of lift station two.
Billing Software Update
Patton provided an update on the transition to a new utility billing system set to go live with the May billing cycle. Customers will receive new account numbers under the new system. They will also have the option to receive their utility bills by email rather than by mail. An equal payment plan option is expected to be available later. Patton noted she has already heard from at least one customer interested in setting up automatic drafting, saying he was tired of driving to town hall to drop off his check each month.
Disposal of Old Equipment
The board approved the disposal of old printers and computers, including a large printer that has been stored at town hall for years. Staff was directed to ensure all equipment is disposed of properly, with particular attention to handling hard drives appropriately before disposal.
Bradford Pear Trees on Railroad Street
The board discussed a broken limb in one of the Bradford pear trees on Railroad Street that needs to be removed. A power line runs through the area, which board members noted as a complicating factor. The board discussed several options for getting the limb out, including reaching out to a contractor who has previously done tree work for the town. The board agreed to pursue getting a price for the work. Members acknowledged they like the shade the trees provide, but recognized the broken limb needs to be addressed.
Zoning Violations
The board addressed a property on U.S. 264, which has recently been converted into what appears to be a salvage yard. The change was described as having happened quickly, with board members saying it seemed to appear almost overnight.
The property is zoned AR-20, residential agriculture, which does not permit salvage yard operations. Patton said she revised the notice letter to the property owner to reflect the AR-20 designation and to make clear the property would not be eligible for rezoning for that purpose. The letter will also invite the owner to come before the board or meet with Patton to discuss an action plan.
The board also discussed several lots in the Rustic Ridge subdivision that appear to be owned by the same individual, where multiple vehicles, truck trailers, and other debris have accumulated. The board agreed to concentrate its initial enforcement effort on the U.S. 264property, where the zoning violation is clearest, before addressing the Rustic Ridge lots.
A third property with a large collection of lawn mowers behind the house was briefly mentioned. The board agreed to hold off on taking action there for now, as there was discussion that the property may be changing hands, and members wanted to see how the situation developed before pursuing enforcement.
Budget Workshop and Hearing
The board scheduled a budget workshop for May 5 at 5:30 p.m. A public budget hearing was scheduled for June 2 at 6:45 p.m., just prior to the regular board meeting. Patton said she would place the required legal advertisement in the Daily Reflector.
Committee Reports
Commissioner Dianne Morris reported that garbage was picked up as scheduled, streets remained in the same general condition as previously reported, and one burial had taken place at the cemetery. She noted the cemetery road has developed holes and suggested adding crushed run to address them. The board also briefly discussed the condition of flags at town facilities. Patton said the town keeps a spare flag on hand so that when one is taken down for looking worn, a replacement goes up immediately, and a new one is ordered to keep the rotation going.
Commissioner Ray Holloman reported the playground installation was nearly complete, with only the border edging remaining to be installed. Once that work is finished, mulch can be placed. He said the work should be wrapped up within the week.
Water and Sewer Operations
The board discussed coverage for water and sewer operations during an upcoming period when one staff member will be on vacation. The board agreed that lift stations would be checked daily and that responsibilities would be divided among available staff, with additional help from at least one other person for water testing and meter reading.
Announcements
The Friends of the Library will hold a membership appreciation event on April 30 at 6 p.m. at the Greene County Community Center. The event will feature Western music.
The next regular board meeting is scheduled for May 5.
