Rosalia audit shows cash crunch

Rosalia’s city government is nearly running out of cash.

A report issued last week by Washington State auditors found the town has overspent in its last three budgets. Those deficits left the town with a cash reserve of $33,000 at the end of 2011, about one percent of the town’s annual budget.

To cover the gap, the audit report said, Rosalia officials have used seven loans from its wastewater treatment plant fund over the past six years to cover $108,319 of overspending.

Similar findings were discovered by state auditor’s in the town’s 2006 financial statement.

In the town’s response to the state audit, Mayor Jim Stenhouse said a former town clerk provided inaccurate financial information. That lack of information, he said, made it difficult for the town to properly assess its finances.

Mayor Stenhouse said the town is looking to cover the gap by cutting operating costs, increasing usage fees and more closely monitoring the work of town employees.

The city council is also now holding regular budget workshops to discuss how increased fees and reduced services will impact citizens.

The town has increased fees to rent town buildings and has replaced paid caretaking of city buildings with volunteer help.