Auditor Says Smithville Water/Sewer Fund Ends 2018-19 Fiscal Year in the Red

February 4, 2020
By: Dwayne Page

Will the City of Smithville be forced to raise water and sewer rates within the next couple of years?

During Monday night’s regular monthly meeting, John Poole, Hendersonville CPA who performs the audit for the city each year, gave his report for the year ended June 30, 2019. Poole said the city’s water and sewer fund concluded the fiscal year in a negative “change in net position” of $96,391 meaning revenues did not keep pace with expenditures

Under state law, if a utility continues to operate at a loss for more than two years and doesn’t address it, the state has the authority to force rate increases to make it solvent.

Poole said the city is not to that point yet.

“We’ve got to make sure for the year ending June 30, 2020 that we have a surplus (for the year). If not the state will require us to take certain actions,” said Poole.

Total water and sewer fund revenues are derived primarily from metered sales along with tap and service fees which totaled more than $2.4 million for the year. Operating expenses totaled over $2.5 million dollars and take into account salaries, employee benefits, billing, utilities, professional services, repair and maintenance, supplies, office expense, vehicle operation, insurance and deprecation which is the single largest expense at $774,235.

The city raised water and sewer rates in 2017 partly because the city could no longer count on the revenue from its largest water customer, the DeKalb Utility District, which had built its own water treatment plant and no longer needed to purchase water from Smithville.

City water customers currently pay $7.25 per thousand gallons of usage. Rates for customers outside the city limits are $10.88 per thousand. City sewer customers pay $6.75 per thousand gallons.

City officials will evaluate the status of the water and sewer fund again when it prepares the 2020-21 budget this summer.

Meanwhile, Poole said the general fund was also in the red for the year ended June 30, 2019 by $81,631. Of course for the current fiscal year, 2019-2020 the city increased the property tax rate by 25 cents per $100 of assessed value which is expected to generate $350,000 in new money for the general fund. Next year’s audit will reflect what impact that will have on the city’s bottom line in the general fund.

Overall, Poole said the city is in good shape financially with low debt, only $347,000 and strong surpluses of almost $3.5 million in the general fund and $3.6 million in the water and sewer fund. “For a city of this size I would say this is a very good sized reserve and sufficient to do the things in the future that it might want or need to do,” Poole added.

Poole said he found no other causes for concern in his audit. “The monies are only being spent on city business. We did not run across anything as auditors that came to our attention where we thought that was not the case. We also look to make sure we are following policies when it comes to city policies and grant agreements, etc. Our report shows that we did not find anything that gives us any concern about how the city’s monies are being spent,” said Poole.

In other business with the golf season about to get into full swing, the aldermen voted to renew the city’s contract with Jimmy Lewis to be the caretaker of the golf course for $33,000 for the year.

The aldermen also denied a request from property owners at 712 and 714 Fisher Avenue for a rezoning from R-2 residential to C-1 commercial. The planning commission reviewed the request last month after a public hearing and recommended to the aldermen that the properties not be rezoned. The move was considered to be spot zoning which is something that the city tries to avoid.

February 4, 2020
By: Dwayne Page

Two positions on the DeKalb County Board of Education will be filled in the county general election on August 6.

Those seats are currently held by W.J. (Dub) Evins, III in the 5th district and Doug Stephens in the 6th District. The terms are for four years.

Monday, February 3 was the first day potential candidates could pick up a qualifying petition for the School Board election and Jason L. Miller has obtained one to seek the 6th district seat.

The qualifying deadline is April 2.

Seven members make up the Board of Education but they do not all run in the same year because their four year terms are staggered. The 5th and 6th district positions are up for election this year. The other five were filled in 2018 and will be on the ballot again in 2022.

February 4, 2020
By: Dwayne Page

The Smithville Municipal Election will be Thursday, August 6 and already potential candidates are showing an interest in running

Monday, February 3 was the first day persons could pick up qualifying petitions for the city election.

The election commission issued four petitions Monday.

Incumbent Aldermen Shawn Jacobs and Danny Washer will seek re-election and two newcomers, Jessica Higgins and Timothy John Perricone are planning to get in the race. The qualifying deadline is noon on April 2.

Three aldermen will be elected in August including the positions currently held by Jacobs and Washer and another incumbent Alderman Donnie Crook. Jacobs was first elected to the council in 2009 and Washer came on board after his first election in 2011. Crook was appointed by the aldermen in 2018 to fill the unexpired term of former alderman Josh Miller who was elected mayor that year. Although he has not yet obtained a petition, Crook has signaled that he may seek election as alderman

All terms are for four years.

The City of Smithville has five aldermen and a mayor but they do not all run for election in the same year. Three aldermen will be elected this year. The other two aldermen and the mayor were elected in 2018 and will be up for election again in 2022.

Perricone is a former local businessman and Higgins is also active in the community.

Higgins released the following formal announcement.

“Jessica Higgins is the first candidate to announce her candidacy for Alderman to serve on the Smithville City Council. As founding member of Art Revolution, current Marketing Director for Off the Beaten Path Studio Tour, and owner of Nature’s Main Street, Jessica understands the role of the arts and crafts for community and economic development. Jessica currently works for Center Hill Realty as Marketing Administrator, Licensed Assistant and REALTOR®. Jessica wants to use her experience in marketing arts and business to expand the development of Smithville. One project in particular that she would like to promote is to make downtown more user friendly for people with disabilities.

Jessica is married to Chris Higgins. They have shared the joy of parenting Eleonore, Karleigh, and Amelia Atnip. Jessica and Chris also delight in time spent with Chris’ grandchildren. Cooking for friends and family is one of Jessica’s favorite things to do whenever she is given the opportunity.

Jessica’s work in the arts and crafts and business has taught her that any goal can be achieved if we are willing to think creatively to achieve it. As Alderman, Jessica wants to work with the council and citizens to build on the city’s already numerous accomplishment”.

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