Town cautioned over water costs

(11/20) During the presentation of the results of the audit of the Town’s finances, the Town Staff received praise by the Town’s auditor on how they keep the books. However, the auditor cautioned the Council on the poor health of the Town water and sewer fund.

The Town has benefited handsomely by utilizing COVID-era American Rescue Plan Act Funds (ARPA) to help pay for some much-needed upgrades to the water & sewer facilities, to the tune of $508,650 in FY-23, and $192,000 in FY-24. But there will be no further ARPA funds coming to the Town in FY-25 to offset costs of upgrading the Town’s water and sewer facilities.

According to the audit report, revenues to the "Water and Sewer Fund" decreased by $334,697 in FY-24, mostly due to the end of ARPA funding. While at the same time, "Water and Sewer Fund" expenses only dropped $2,000.

Of particular concern to the auditor was the cost of running the water and sewer plant, which she noted was $645,727, while the income from the operations was only $406,933, for a loss of $238,794.

The audit was preformed prior to the loss of the long-time water plant operator in August. The cost of performing necessary water testing and maintenance at the water plant doubled to approximately $170,000, worsening the imbalance between the cost of supplying water and sewer service to the Town and the revenue received for that service.

In the Council’s September meeting, Commissioner John Cutshall expressed concern over how the increased costs of operating the water and sewer plant would be funded in the years to come. Cutshall noted that the $88,000 increase in the cost of maintaining the facilities, when divided between 450 users, would result in water and sewer bills going up, on average, by approximately $200/year.

Cutshall’s calculations, however, did not take into account the cost of overdue maintenance and upgrades identified by the new water plant operator, or the ongoing cost increases to maintain the upgrades, which will only exacerbate the cost situation.

At the same September Council meeting, Burgess Heath Barnes told the Council that an initial list of improvements and maintenance items needing to be completed to bring the plant up to satisfactory operating conditions had been submitted. "Some of the items will result in additional unbudgeted costs, such as equipment repairs and replacements."

When asked when the list of recommended maintenance and upgrade items would be released to the public, Barnes said the report would be issued "once we have had a chance to sit down and meet with them and see what’s necessary and what’s just a wish list for them."

In discussing the cost of financing the new Town Hall, Cutshall expressed concern for the looming debt the Town will be taking on while faced with the need to maintain the ageing water and sewer facilities, saying "I think the people of Woodsboro deserve to know how much debt the Town is carrying and how it will be funded."