Auditor: Benson dipped into its general fund to make up for utility fund losses, leading to deficit

An independent audit of the town of Benson found the town dipped into its general fund to make up for losses in the utility fund for several years in a row.

It comes as the Benson Board of Commissioners searches for a new town manager and assistant town manager after they both gave notice.

Sharpe-Patel Audit Services Director Jay Sharpe said he's worked with the town for six years.

"The financial situation for them has not been as good over the last several years," he said.

Sharpe said the root of the problem is a utility fund that hasn't made money for years. 

"The general funds lent the electric fund and the water and sewer fund money over the last several years," he said. "From my estimation, it was about $2.7 million at the end of 2025."

Sharpe attributes some of the financial challenges to high turnover in town leadership, including a series of town managers and finance directors.

"The manager position, the finance director position, those are two more important positions, especially when it comes to the budget and operations of the town and maintaining that fiscal responsibility," Sharpe said. 

Sharpe said the town is moving in the right direction.

"The financial statements don't look great right now, but they're able to make day-to-day operations," he said. "They're going to struggle a little bit, but long term, I think they're moving in the right direction."

Sharpe said that last year, the water and sewer fund generated a profit, while the electric fund was also showing signs of improvement.