LIVERMORE FALLS — The town’s general fund is in very healthy shape for the year that ended June 30, 2010, auditor Ron Smith told selectmen Monday.

The town had $1.3 million in total assets, including $920,082 in cash, and $322,084 in liabilities and fund equity as of that date, he said. The total fund equity was $993,979. Of that, $959,965 is undesignated and $34,014 designated.

That gives the town about 70 days of operating expenses, he said. He would like to see it stay at that level or grow.

Smith issued a caution to the board on a proprietary fund, the Sewer Department, which had an operating income loss of $194,000 during that time period.

A total of $191,289 of that loss is on paper due to depreciation of equipment and infrastructure, he said.

The Sewer Department brought in $317,449 in operating revenue with $302,657 of it coming from sewer charges. Operating expenses totaled $511,800.

Overall, the Sewer Department lost $64,829, bringing the total income loss to $259,180, Smith said.

The department had $2.66 million in total net assets as of June 30, 2010, and $2.08 million in liabilities. On July 1, 2009, it had $2.92 million in net assets.

“The Sewer Department is pretty leveraged,” he said. “I think it can be addressed.”

Smith said he and Town Manager Kristal Flagg will have a lot of discussions so that the Sewer Department expenses do not become a cost to the town.

Currently, only sewer users bear the cost of the sewer system. Those property owners who do not have sewer, do not pay for it.

The Sewer Department had not realized the full effect of a 20 percent rate increase that had gone into effect last year when the audit was done, Smith said.

dperry@sunjournal.com

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