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.
Curtis Coon
11:41 pm on Monday, December 17, 2012
I fail to see how things are "looking up" if the water rates are up, usage is down and the deficit is 1.3 million dollars and growing.. Either the Water and Sewer are Enterprise Funds or not... Which is it? True, hookups for new construction are "down", but does everyone understand that it is more than ten thousand dollars more expensive to hookup in Havre de Grace than it is in the County? Same water, same pipes. What gives? Ever wonder why lots of homes are being built in Beech Tree but not nearly as many in Havre de Grace? Between the hookup fees and high taxes, the price of a new home is less expensive elsewhere. Hello, people....as long as Havre de Grace does not compete price-wise, it will finish second in what is clearly a tough market. Reduction of hookup fees would increase the number of customers as well as accelerate repayment of bonds.