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The Town of Elma received top grades from independent auditors Malecki & Dreschler during its 2013 budgetary review at a work session Wednesday.

Auditors Thomas Malecki and Carl Widmer said although the results are a draft, the town’s fund balances total $3.4 million through the end of December.

Supervisor Dennis Powers sized up the good report card: “We pay cash for everything and we have no debt.”

State auditors do not like to see the general fund balances of towns grow too large, recommending instead that the money be used to reduce property taxes, officials said.

Elma, however, has no town property tax. The administration of town government and its buildings is supported by revenue from sales taxes, town clerk fees, fines, forfeitures from the court, state aid and mortgage tax revenues from sales and mortgages on properties.

Malecki assessed the Highway Department picture as very stable, with a fund balance of $582,000. But, he added, because of the severe winter, town officials may have to draw on some of the balance to soak up increased spending for overtime and road repairs.

And Powers, added, “At the transfer station we need to redesign the pit.”

The town, according to Malecki, needs to create a long-term financial plan to establish priorities on new equipment, Water Department needs, road projects and infrastructure repairs.

Powers noted that this year, the town will be tearing down two buildings at the Creek Road Park and building a new football tower with storage.

He added that the town also is seeking a $50,000 grant to build a four-bay pole barn behind Town Hall. The town plans to chip in $20,000 toward that project.

Also, underground fuel tanks at the Highway Garage have to be removed and placed above-ground.

The Water Department plans to repaint the Seneca Street tank. Also, he added, the town is seeking a grant to improve record management and storage for the town clerk’s office and building department.