Walhalla Audit Highlights Strained Water/Sewer Funds

The recent audit for Walhalla revealed a clean financial opinion overall but underscored the concerningly low unrestricted cash reserves in the water and sewer enterprise funds, equating to approximately half a month of operating expenses – a point emphasized by Council Member Grant Keehn. The situation necessitates a strategy to bolster these reserves to a healthier three-month level…

Walhalla Council Member Grant Keehn is holding a public meeting at his home on Saturday morning at 10 am to discuss Walhalla’s plans for annexation of new water customers through a covenant agreement.

Keehn’s meeting aims to address concerns related to these plans in light of the city’s financial situation, particularly the limited water and sewer funds. The audit also pointed to a significant interfund debt owed by the general fund to the water fund, suggesting a potential avenue for increasing the latter’s reserves through a repayment plan. While the general fund maintains a stronger cash position, the limited liquidity in the essential water and sewer operations presents a key financial challenge for the city moving forward.