Water and Sewer Annual Report on City Council Agenda
A commission will report on the Water and Sewer Fund's $1.2 million deficit during the Dec. 17 Havre de Grace City Council meeting.
The Water and Sewer Commission plans to present a bleak financial picture Monday in its annual report before the Havre de Grace City Council.
The Water and Sewer Fund was $1.2 million in deficit for fiscal year 2012, according to a statement from the commission in advance of the meeting.
There was a $487,000 deficit for the fund in fiscal year 2011, according to last year's report.
Pointing to the "roots of the problem" for 2012, the commission noted a lull in development (17 fewer building permits were issued than projected, for example), vacancies led to lost property taxes and those using the water and sewer supply, the 2012 Water and Sewer Commission report states.
The city's leader has reported that things are looking up for water and sewer already.
In Mayor Wayne Dougherty's financial report for the first quarter of fiscal year 2013, he stated that the city has made "significant progress" in reducing the deficit for the water and sewer fund.
The fiscal year 2013 budget projects a $565,000 deficit for the Water and Sewer Fund by year's end, and Dougherty said the city has successfully renegotiated its debt service with the state so it can reduce this year's payments by $960,000.
Still, he noted that the deficit, which was $1.2 million at the end of fiscal year 2012, increased to $1.3 million by the end of the first quarter in fiscal year 2013. According to the mayor, the Water and Sewer Fund is dependent on the general fund for its short-term cash flow.
The City Council meeting begins at 7 p.m. at City Hall (711 Pennington Ave.) in Havre de Grace. See the full agenda here.