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Ferriday deficit, water system losses reported in 2011 audit
While the Town of Ferriday recorded a general fund deficit of $193,867 for the fiscal year ending June 30, 2011, finances could be improved by proper collections of customer water bills and by the installation of properly functioning water meters.
That's according to a financial report released by the Louisiana Legislative Auditor on Monday. The accounting firm of Silas Simmons in Natchez filed the report.
"We were unable to determine the correct amount of water consumption for the year and the related amounts of water and sewer that should have been billed to customers in the business-type activities and (in) the water and sewer funds," the report says.
The future construction of a new water plant, a third party operator to manage the water system and the installation of new water meters are expected to improve efficiency and quality of the system and increase income. The project is being financed through a $6 million grant and $1.3 million loan from USDA.
Former mayor Glen McGlothin, who completed his term in June prior to the inauguration of new mayor Gene Allen, said he's not surprised by the audit report.
"I tried to tell everybody that the water plant was sucking us dry as well as all the things connected to it, including meter reading," McGlothin said. "The new plant and new meters will help the finances."
Silas Simmons noted in the report that it reviewed utility account billings for 12 residences "that we believe to be large consumers of water" and an unnamed business -- identified as one of the town's largest employers -- that "consumes a large volume of water."
Results showed that the average consumption for each residence was 746 gallons, while the business consumed 2,450 gallons for the month.
"These customers received utility bills ranging from $16 to $19 and the business received a minimum bill of $60," the report noted. "Our review of the entire 238 pages of customers billed indicated that a vast majority are receiving minimum bills each month. It appears that the Town of Ferriday has no limit in many cases on water usage and the customer still receives a minimum bill."For the full story, subscribe to the The Concordia Sentinel's NEW E-Edition! |
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