JOHNSONVILLE—The most recent audit report indicated what a councilman called “a big gamble” has paid off for at least the time being.
The report, presented by Monica Richardson or Newll, Richardson, & Co., LLC at the council’s meeting earlier this month told members that actions taken in the last year to curb costs from the decrease in water and sewer activity have been successful.
The decrease in activity was due to operations slowing at the Welman plant, which accounted for most of the treatment plant’s processing.
However, Richardson warned that the strategy should be altered for the coming year because the practice of operating with what she called a “depreciated value” would not be sustained in the long run.
“We’ve done exceptionally well for what we’ve been through to make this happen,” councilman Dale Strickland said following Richardson’s report. The rest of the members agreed, some pointing out, however, that the city must be careful as it continues in the currently unstable financial climate. Should something occur within the operation of the sewer and water system, the fall out could be serious.
“We need to keep our fingers crossed,” Councilman William Kelley said. “If anything goes wrong at the (treatment) plant, tears up, there’s nobody to fix it.”
How the city will continue to manage the water and sewer situation remains to be seen, but for the immediate future consultants said the bases have been properly covered and managed.
“We know it can’t stay this way,” Richardson said. “But you all discussed this. We knew. I think you all did the best (you could). You covered the cash part.”
The report wound down with a discussion that costs had successfully been cut and properly reallocated.
“What we did was major,” Strickland said. “And it was a gamble that we took in the best interest of this town and this community. I think it paid off.”
Richardson reminded the council that had the decision to take the steps dealing with the treatment plant had not been taken, the costs would have been put back on those who are sewer customers.
However, rates are still due to be increased for those same customers, something else the council said was discussed previously.
While numbers have been down from years past, the consensus from Richardson was that the city “broke even,” as a council member put it. Property tax, and local sales taxes were down, as were police fines, which caused a loss of city assets of nearly $30,000.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement