Wade Turner CPA for Turner, Williams & Associates, P.A., addressed the Heber Springs City Council during a monthly meeting held on March 22.
Wade Turner CPA for Turner, Williams & Associates, P.A., addressed the Heber Springs City Council during a monthly meeting held on March 22. Turner was boastful of the ratio the Heber Springs Water and Sewer (HSWS) currently holds to meet its current obligations. “The current ratio is strong and means the utility can pay its bills,” said Turner. A ratio of greater than 1 is an indication that the utility has sufficient current assets to meet its current obligations. The HSWS ratio as of September 30, 2011 was 3.70; on September 30, 2010 it was 4.66.
The total current assets for year-end September 30, 2011 was $2,421,927. An increase of $450,390 from same date 2010. There were no questions for Turner from council members.
Water Commissioner John Latimer addressed to the council next on behalf of HSWS Manager Donald Knight, who was in attendance and audibly sick. Latimer spoke in detail from a 12 page report given to each council member on an overview of fiscal year 2011 and the fiscal year (FY) 2012 budget.
Latimer touched on several highlights from the report: raw water pumped in 2011 was 1,179,148,000 that included backwash water, water sold and water running through special meters. Latimer expressed concern over 188,606,964 of unaccounted water volume. “We are looking into that” he told the council and said [about the unaccounted water volume] “it did not include water used by the city, that water usage runs through special meters”; Operation expenses for general production cost was $.47 per 1,000 gallons compared to $.50 in 2010; Gallons sold wholesale was 522,857,000 for $988,736; HSWS replaced 2,167 feet of sewer main at a cost of $166,357 which averages $76.77 per foot; Water main lines, a total of 8,116 feet of 6” and 2” were replaced at a cost of $263,758 averaging $32.50 per foot; HSWS is allowed by Army Corps of Engineers to pump 4,545 acre feet of water. HSWS used only 80% of its allotment with total raw water pumped 1,179,148,000 or 3,618.68 acre feet. The daily raw average was 3,231 MGD (MGD = a rate of flow of water equal to 133,680.56 cubic feet per day, or 1.5472 cubic feet per second, or 3.0689 acre-feet per day.
A flow of one million gallons per day for one year equals 1,120 acre-feet (365 million gallons); projected income for HSWS is $3,012,500 with $2,909,176 in expenses. Net income of $103,324 is projected for FY 2012; capitol expenses for FY 2012 are projected at $96,063. This will include purchase of a GPS rover and data collector system complete with software for $60,000 and materials only to build a 30’ x 260’ pole barn for $27,000; estimated cash flow in FY 2012 is $4,599,338 with an estimated ending balance including 5% depreciation of $543,480; 15 year sewer rehab project from 1997 through 2011 has cost of $3,358,281.04 or $65.57 per foot. A total of 51,219 feet of sewer lines have been replaced; grant funds for 24” main and manholes and waste water treatment repairs combined total is $3,702,941. Total project cost in FY 2012 is $270,411; capital water main projects for FY 2012 are $1,537,400 with a grant to include a 12’ water main for an industrial connection costing $267,059; upgrade to HSWS property for current year additions has a grand total of $535,145; water treatment plant and distribution maintenance issues total $375,900, they are all of equal importance but one having to do with the three water treatment plant filters received special council attention. The estimated cost to replace the filters of $140,000 has been revised to $80,000. The council approved unanimously an ordinance to waive the required bidding for the procurement of the three filters for the under drain systems declaring an emergency. The emergency was determined by the city and council that placing the filters into a bidding process would delay the parts needed and result in significant damage if the current parts were to fail. The city then could not perform its stated goal of providing the best services to its citizens as possible. The council had no questions for HSWS and Water Commissioner Latimer thanked the council.