BETHEL — The Town of Bethel ended 2025 with $6.07 million in its general fund, an increase of approximately $980,000 from the previous year, according to an independent audit presented to the Town Board Wednesday, Oct. 14.

Andrew Arias, of Cooper Arias LLP, reported that the general fund balance has increased by approximately $5 million over the past seven years.

The town’s unassigned general fund balance reached $5.5 million, equivalent to 158 percent of its budgeted expenditures for 2026.

Such a large balance relative to operating expenses can attract scrutiny from state financial reviewers. Although New York does not impose a fixed limit on municipal fund balances, towns are expected to justify their reserves based on anticipated expenses and other financial needs.

Supervisor Daniel Sturm said the town had deliberately accumulated money to pay for major capital improvements, including its new $10 million highway barn and a future Town Hall project. Approximately $3.1 million in accumulated funds is expected to go toward the highway barn.

Arias explained that these planned expenditures would provide justification for the town’s unusually large balance if questioned by state officials.

The auditor also noted that approximately $637,000 had been reclassified from non-spendable to unassigned funds following repayment of an advance to the capital projects fund. The accounting change did not increase the town’s total fund balance.

The auditor found no problems requiring changes to the town’s individual fund financial statements. However, Bethel has not estimated the future cost of providing health insurance to retired employees, as required by government accounting standards. Arias said the town would have to address the omission if a funding agency required it to do so.

Arias also reported that three recommendations from previous audits remained unresolved, while two others had been addressed.

Despite those findings, Arias described Bethel as being in a strong financial position.