WATERVILLE — The city is in good shape financially, a firm that did an audit of the city’s fiscal year 2020 reported to the City Council Tuesday.

Erik Nadeau, of Nicholson, Michaud & Nadeau certified public accountants, gave an overview of financial statements in the 58 page report which says the total budgeted revenues for the year were $42,969,890, and actual revenues were $43,301,073, resulting in a positive variance of $331,183. Total budgeted expenditures were $43,499,890 and actual expenditures were $42,407,208, resulting in a positive variance of $1,092,682. For the year, the general fund had an increase in fund balance of $893,865, the report says.

Former City Manager Michael Roy noted that the revenues collected were more than budgeted and the spending was less than budgeted. He noted that the mayor, councilors, department heads and others all made a difference in the bottom line.

“That’s all good news,” he said.

The city continues to meet its responsibilities for sound financial management, according to the audit:

“This year the city meets the fund balance percentage range set by the council of 12%. Carefully monitoring expenditures, finding non-tax sources of revenue, and monitoring its debt repayment ceiling have all helped in establishing a favorable fund balance. Having the fund balance at an appropriate level is important when the city goes to bond. The residents of the city can be proud of its municipal and school personnel, who have worked together to meet its responsibilities for sound financial management.”


The 2020-21 budget the council adopted resulted in no change in the tax rate from 2019-20. That rate was and is $25.76 per $1,000 worth of valuation, the report says.

The Nicholson firm has been auditing the city for six years. Nadeau said there were no significant differences or material weaknesses in internal control in the current year, for city or schools.

“We had no difficulties in dealing with management in performing and completing the audit,” he said.

When a city is able to achieve positive results and add to the general fund balance as opposed to using it, that provides the city with additional leverage when moving into subsequent budget periods, according to Nadeau.

“Overall, I think the city’s financial position is positive,” he said.

In other matters Tuesday, the council and Mayor Jay Coelho honored former City Manager Michael J. Roy, with Coelho reading aloud a proclamation detailing Roy’s 16-plus years as city manager and his accomplishments. Roy, who retired in December but has stayed on part-time to help with the transition, led the city with passion and loyalty, the proclamation says. It asserts that Tuesday, Feb. 2, 2021, is proclaimed “Michael J. Roy Day” in Waterville.


The council also voted 7-0 to rename the IT training conference room at City Hall the “Michael J. Roy Conference Room” in recognition of his 16-years of loyal service to the city.

City Manager Steve Daly reported that Roy will continue to be employed on a part-time, temporary basis for the foreseeable future to help with matters including tax increment financing and the downtown BUILD grant.

“He’s proven to possess a wealth of historical knowledge that I find important, necessary and extremely advantageous,” Daly said.

Councilors voted 7-0 to support a diversity statement that encourages all city residents to prevent discrimination and foster diversity and inclusiveness. Introduced by Councilor Rebecca Green, D-Ward 5, the statement says diversity is an important part of Waterville’s history, culture and identity, and essential to its growth and vitality. Waterville, the statement reads, is committed to welcoming and supporting all people, regardless of race, ethnicity, gender, age, sexual orientation, gender identity, expression and abilities.

Green said Fairfield, Winslow and Oakland have adopted similar statements so she is eager for Waterville to join with those neighboring towns to show support for the statement.

Coelho said he hears a lot about other area towns establishing such efforts before Waterville does and Waterville is the leader in the region and should be doing them before smaller communities do.

“We should be leading in all things in this region,” Coelho said. “We are Waterville — we should act like it. Thank you, Rebecca.”

Green said she hopes the city’s support of the diversity statement is only the beginning of a larger conversation to be had in the community.

The council also voted to waive foreclosure on two municipal tax liens. Members also voted to renew a special amusement permit for Waterville Brewing Co. at 10 Water St., in the Hathaway Creative Center.

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