By Matt de Simone
Fincastle Town Council received a favorable audit report and approved using up to $50,000 in remaining COVID-19 relief funds toward a backup generator for the town’s main well during its Aug. 13 meeting.
Corbin Stone, CPA, of Robinson, Farmer, Cox Associates PLLC, presented the town’s audit for the fiscal year ended June 30, 2025. Fincastle Mayor Mary Bess Smith noted the town is a year behind on its financial statements because of its size and the workload involved in preparing the reports.
Stone said the town received an “unmodified” or “clean” opinion, meaning auditors determined the financial statements were materially correct. The audit found no significant deficiencies involving internal controls and no compliance issues requiring a report to the town.
“You’re in good shape for a town this size. You really are,” Stone said.
The town had just over $2 million in total net position at the end of the fiscal year, including approximately $1.069 million associated with the water and sewer enterprise fund. The town had approximately $1.7 million in liquid assets, including roughly $800,000 in certificates of deposit.
The general fund balance grew to $581,000 in 2025, while general fund revenues totaled approximately $348,000. Stone said the water and sewer fund has experienced “slow but steady” growth, with net position increasing from about $700,000 in 2021 to approximately $1.069 million in 2025.
The town’s asset-to-liability ratio was 5.4, which Stone described as strong.
“We like what we’re seeing,” Stone said, while noting that inflation has begun causing financial difficulties for some localities. He had not yet reviewed Fincastle’s 2026 financial numbers.
Photos by Matt de Simone
Mayor Smith asked whether the COVID-19 relief funds the town received contributed to some of the growth shown in the audit materials. Stone said the funding accounted for a significant portion of the increase, as the town used the money for projects including electronic water meters and infiltration and inflow studies rather than its own funds.
Smith said the town has intentionally built financial reserves because of the age of its wastewater infrastructure.
“We have tried to build up a nest egg because we know that if something happens with our wastewater, that it’s going to be expensive,” Smith said.
Stone recommended that the town consider developing a longer-term capital improvements plan for its water and sewer system. Smith said the town has tried to maintain a three- to five-year outlook but acknowledged that major infrastructure needs are difficult to predict.
Council member Jim Reynolds asked whether the town would have to repay any of its COVID-19 funding. Smith said it would not, provided the money is spent on eligible infrastructure projects by the required deadline. The town is on track to spend the funds by the end of the year.
Following the audit presentation, council approved its August bills and reviewed the July treasurer’s reports.
The council then approved using up to $50,000 in remaining COVID-19 relief funds toward a backup generator for the town’s main water well.
Town Manager Melanie McFadyen said the town had obtained quotes for a diesel-powered generator equipped with an automatic transfer switch, allowing it to activate automatically without someone having to travel to the well.
Under current conditions, McFadyen said the town could reach a boiled-water situation after approximately eight to 10 hours without power at the well. Another eight to 10 hours without a generator could result in portions of town running out of water. The proposed generator would provide approximately another 24 hours of capacity.
The generator meets a preferred FEMA standard and could eventually be moved to the town’s other well site if necessary.
McFadyen said the town’s electronic water meters came in approximately $40,000 to $45,000 under budget. The town determined the remaining COVID funds could be redirected toward the generator because the money would still be used for eligible water and wastewater infrastructure.
Council approved the motion. McFadyen said the town also has a grant application pending that could provide funding for an additional backup generator.
The council also received an update on sidewalks following a meeting with the Virginia Department of Transportation.
Three primary locations were discussed: the sidewalk on Church Street between Back and Main streets, the sidewalk on Murray Street between Church and Roanoke streets, and the sidewalk in front of the probation office. The town also asked VDOT to examine an uneven sidewalk in front of the Botetourt Chamber of Commerce and deteriorating brick sidewalks.
McFadyen said VDOT representatives received photographs and visited the locations. Smith said she was optimistic the agency would address at least some of the problems.
The town also discussed a recent incident involving an 18-wheeler at Main and Hancock streets. The truck reportedly struck signs, damaged the sidewalk and had difficulty making the turn before leaving the area. Smith said the town has a photograph of the truck’s tags and plans to contact the Botetourt County Sheriff’s Office.
The incident renewed discussion about establishing a truck route through Fincastle, which town officials said would require action by the county.
Smith said Fincastle streets are expected to be paved before October, with streets immediately surrounding the courthouse construction to be paved next year after the project is complete.
The town also plans to pursue digital speed-limit signs that flash when vehicles exceed the posted speed.
At Big Spring Park, council members praised the nearly completed gazebo project and work on the park’s monument. The stonework on the monument was completed by Bert Perkey at Cornerstone Masonry and gazebo work was done by Blue Mountain Construction’s Jacob Martin. The fence is nearly finished, with gates still to be completed, and the town is considering replacing boards on the bridge.
The town also plans to apply for a $50,000 non-matching, reimbursable Virginia Department of Forestry grant to remove invasive plants from the park. If awarded, a second phase would focus on replacing some of the vegetation with native hardwood trees.
McFadyen also reported on maintenance work completed at the town office by Dennis Webb, including work on locks, doors, blinds, gutters and landscaping.
The town is continuing work on an update to its comprehensive plan. McFadyen said surveys will soon be mailed to Fincastle addresses, with additional copies available at the library.
The council’s next meeting is scheduled for Sept. 10 at 7 p.m. at the Fincastle Volunteer Fire Department.
