Under pointed questioning by members of the Common Council, Water and Sewer Department director Guy Russo explained the history of a financial "perfect storm" which drained nearly all revenue from the Sewer department, and the steps already taken to bring the department back into financial health.
The special workshop meeting of the Common Council was called at the end of the regular September Common Council meeting to allow time for Russo to analyze the problem, and answer questions submitted by Council members. At that time, the Sewer Department was broke, and did not have the funds to meet expenses.
Russo blamed deliquent accounts and conservation as the main culprits in the Sewer Department shortfall.
"If bills had been paid as they regularly are," Russo explained. "We wouldn't be where we are today.
In the past month, with an agressive second billing, and lien notice program, the department has collected 38% of it's goal of $500,000 in revenue from these billings, and that's with two days left in the month, with a plentitude of late-payers who wait for month's end to settle up.
The meeting got off to a rocky start as Mayor Sebastian Giuliano designated the workshop as a sole function of the Common Council, and handed chairmanship for the meeting to deputy mayor and Council member Joe Bibisi.
Bibisi attempted to hold Council members to a preliminary recitation of submitted questions, which Russo would be asked to answer.
Instead, Russo made a lengthy opening statement, and then the Council members asked submitted questions and follow-ups.
Along with the nearly $200,000 collected against delinquent accounts, Russo explained that his department had applied for a $200,000 refund from the State Department of Environmental Protection and was preparing thousands of dollars in cuts in the deparment in areas from open jobs, to scheduled maintenance.
Council members peppered Russo, and city Finance Director Carl Erlacher with questions about bugeting process, audits and collections. They also quizzed Russo, and city attorney Tim Lynch about how the WPCA (Water Pollution Control Authority) operated, and where authority and responsibility for financial decisions rested. Both Russo and Erlacher admitted that procedures were not perfect at the WPCA or the Sewer department, but when revenue was good, the department remained out of financial trouble. When the economy forced individuals into financial binds, paying the sewer bill was often the last thing residents would consider.
"They pay their mortgage so they don't get thrown out of their house," Russo said. "They pay their car payment so they can drive to work. They pay their credit card bill so their rate won't increase. Our 18% interest fee was once considered punitive, and that's no longer true. And if you don't pay your sewer bill, it doesn't get reported on your credit report."
However Russo indicated that a collections agency is being interviewed to go after delinquents, and that property liens will be issued. He also suggested that turning off water to delinquent accounts is being considered, as is the publication of the names of delinquents.
Russo explained that the economy and conservation have also taken tolls on other water and sewer departments, and other utilities. Middletown has seen a 12% reduction in use of water and sewer.
The WPCA meets Thursday afternoon, and Russo intends to present his cost-savings and revenue-increasing measures to the authority for a vote.
The City needs to stop holding people's hands. Maybe people should stop paying their cable bill and pay their utilities first. It again will fall on those who do pay on time by raising fees in the end. The City should shut off the water for those individuals and not feel bad about it at all; citizens should grow up. Cut off the water and I bet what is owed will role in. Payment plans for those who cannot afford to pay is better than giving them a free ride any longer. The department is at fault for babying citizens as much as the individuals who choose not to question the fact that they haven't paid for water and that they should perhaps inquiry about their bill. It is not up to the department to continue to coddle debtors.
ReplyDeleteAnonymous 12:06 - I think that it is important to keep in mind that in the current economic climate many families are doing all they can to pay what bills they can. To claim that our city should "shut off water for individuals and not feel bad about it", seems a little short sighted. To hastily make a decision to take away peoples access to clean water, which is a necessary element in things like cooking and personal hygiene, is unfair. I understand your frustration - but you have to remember that this is water we are talking about, you are not talking about limiting someones access to an air conditioner or cable television, you are taking about removing their access to water. I am glad that this is not a decision that is being taken lightly.
ReplyDeleteThings are not going well at the sewer department and not just with their ability to manage their finances. Will anyone be held accountable?
ReplyDeleteThe attached link to the Middletown Press contains the stinky details:
http://www.middletownpress.com/articles/2009/09/18/news/doc4ab2ffc3bf0df527642498.txt
Remember the dire predictions from the fear mongers regarding fuel efficiency requirements? Remember how they said it is a double-edged sword? Remember how they ranted about more efficient = less fuel used = less tax revenue? Remember? Remember how we scoffed?
ReplyDeleteWhat was one of Water Director Russo's reasons for their budget woes? A 12% reduction in water use due, in part, to conservation.Guess what's next?