A recent financial report shows that the Water and Sewer Department has been losing money since 2004. During that time operating expenses and depreciation have exceeded revenues by at total of $1,295,020. The current rate of loss is approximately $10,000 per month. The department has been making up the losses by using cash reserves. As of the end of 2010, the department had $695,956 in cash and investments. This money will be depleted in approximately 5 1/2 years at the current rate of expenditure. However, Utility Partners estimates that it will cost $2.5M over the next 5 years to replace equipment, and another $1M to over10 years to clean the lagoons, expenditures for which there are no cash reserves.
There is no easy solution to this budget problem. The department has no choice but to raise rates to cover operating costs and the cost of replacing and maintaining equipment and facilities. If there is a crisis requiring a large expenditure, it is very likely that the town will have to provide money.
The coalition suggests that the Water and Sewer Department work with the town, Utility Partners, and an independent accounting firm analyze the current financial situation and develop a plan to find the best way to address the financial and related technical issues.
People need to get more involved, These commissioners that were suppose to help keep things running smoothly have done nothing but put the utilities including the Electric Department in hole, its time people wake up and hold these fools accountable, they are making bad decisions with OUR money and in the end its us the tax payer/rate payer that continues to take the burdon for others personal agendas and opinions. This is not how democracy is suppose to work.
ReplyDeleteThanks anonymous. One reason that Water and Sewer finds itself in this position is that they do not have a capital replacement budget. The same is true of the Electric Department and the town. If you want to hold people accountable, go to meetings and insist that each of these entities develop long range plans and establish a capital reserve for repair and replacement of equipment and facilities. If they don't, vote them out in March.
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