At its regular meeting on March 26, 2024, the Eutaw City Council was presented with financial reports, by Ralph Liverman, Fiscal Advisor on several of its funds including the General Fund, Sewer and Water Funds, 3 Cent and 7 Cent Gas Tax Funds. These reports were for the first five months of the current fiscal year, which began on October 1, 2023, until the end of February.
In his report, Liverman pointed out that both the Water and Sewer funds were running a deficit each month of the fiscal year. The city’s Water Fund had revenues of $283,399.14 with expenditures of $363,128.88, for a deficit of $60,004.72 for the five-month period. The Sewer Fund had revenues of $94,133.56 and expenditures of $178,569.62, for a deficit of $84,436.06 for the five months.
In his accompanying report, Liverman said, “The Council must raise both water and sewer rates and do it sooner rather than later! Current collections will not support your present expenditures and debt repayments to USDA Rural Development on loans to improve the system. He also urged a review of personnel, overtime, and other expenditures, looking for ways to cut expenses in this department.
Liverman also indicated that the City Water and Sewer Department needed to negotiate new rates with the Consolidated Catfish Plant, which had been receiving a special incentive rate since it opened 25 years ago.
Liverman said in the past, funds from electronic bingo were used to cover the Water and Sewer deficits, but the city was no longer receiving bingo distributions from the Sheriff of Greene County, to handle these and other expenses.
CPA Rick Harbin, the City’s auditor, also pointed out in a previous meeting, when reviewing the city’s audit report and finances, that an increase in water and sewage rates was needed.
The current rate for water, for residential customers in Eutaw is: $14.41 for the first 2,000 gallons and $5.39 for each additional 1,000 gallons. The sewer rate is $8.59 for the first 2,000 gallons and $1.55 for each additional 1,000 gallons. There are higher rates for small business and commercial customers.
Sarah Levelle, Chief Water Clerk stated, “We have had some rate studies by different agencies, recommending increases. We have not increased water and sewer rates since 2015 but the cost of all our supplies and workers has increased.”
The Council deferred action on water and sewer rates until its next working session where they could discuss the issue in more detail.
Liverman also recommended close attention to expenditures in the city’s General Fund, especially for street repairs and for the use of city owned facilities such as the R. H. Young Community Center (formerly Carver school) and the National Guard Armory. He said rental for the use of these facilities was not covering expenditures. He recommended closing one or both facilities. Earlier in the meeting, the Council had tabled a proposal for establishing rental rates at the R. H. Young Community Center, until the next scheduled work session.
The Council approved a resolution declaring ‘Tony Rice Day’ for April 25, 2024, the one-year anniversary of Rice’s untimely death in an accident, while working to repair a water main in Branch Heights. The Mayor also honored Dr. Sandrall Hullett, former medical director of West Alabama Health Services and the Greene County Health System, with a moment of silence on her passing.
In other business, the Eutaw City Council:
• Scheduled a Council Work Session for April 8, 2024, at 2:00 PM at City Hall.
• Approved a loan of $5,000 to the Eutaw Chamber of Commerce for painting a mural, with repayment from reimbursable state grant funds, which can only be received after an invoice is presented for work completed.
• Approved use of meeting space, at no cost, for a meeting on March 28, 2024, of the Black Belt Community Foundation, Greene County Associates, at R. H. Young Community Center. The meeting was to explain the availability of Arts and Community Grants by the foundation.
• Approved closing City Hall for a holiday on Good Friday, March 29, 2024.
• Approved payment of bills.