Turning a $3 Million-Plus Deficit into a Surplus

Mayor Says Future of Water/Sewer Account Very Strong

– Allison Goldsberry

Two fiscal years and $40,000 later, the city is finally seeing some closure to a $3.2 million deficit in its water and sewer account.

At a press conference held at his office on Friday, Mayor Michael McGlynn said the “future of the water and sewer account is very strong,” and the account could have an $800,000 surplus by the end of the year if “things go steadily.”

The city spent $40,000 on an independent audit conducted by the firm Melanson and Heath to determine what caused the deficit. Firm representative John Sullivan said the account incurred such a large deficit due to rate cuts in fiscal years 2005 and 2006, which happened at the same time as the new meter installation program. Both combined led to a lack of sufficient revenue in the account.

Sullivan said some people did not receive bills or were billed inaccurately due to faulty readings. In some cases, customers did not receive a bill for an entire year.

Mayor McGlynn said the city has been talking to customers who were not billed correctly or not at all, and is working on recouping that lost revenue. According to the mayor, those who did not receive bills said they were told by former Water and Sewer Department employees that they would receive a bill when they called the department.

The Water and Sewer Department is currently under new leadership, which Sullivan said has had a “substantially positive impact” on clearing up the confusion and the deficit.

Mayor McGlynn said the Water and Sewer Commission is currently working on setting new rates, which, combined with recouping revenue from those who basically had free water for up to a year, will eliminate the deficit and possibly create a surplus of $813,000 by the end of the year.

More on Water and Sewer Rates…

Councilor Wants “Use More, Pay More” to Drive Water/Sewer Rates