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New rate increases in Aurora?
By EUGENE L. TINKLEPAUGH, Staff Writer
AURORA -- Town Auditor Ken Chilcoat gave the Aurora Board of Commissioners a familiarly worded warning Monday during his presentation of the town's finances.
"The town is solid as a whole," Chilcoat said. "It's the individual funds that need attention."
Chilcoat singled out the town's water and sewer fund as in a state of emergency.
"I'm going to stand here today and say the same thing I said last year," Chilcoat said. "'You've got to raise your rates.'"
Chilcoat recommended an immediate increase of 25 percent on top of the hike residents have been feeling since July.
In June the board passed a budget that raised water rates by 15 percent and sewer rates by 10 percent. Last year, water and sewer rates increased by 10 percent each.
Chilcoat's proposal would bring the average user's monthlyl water bill to about $18.09. The average sewer bill would rise to about $22.48, according to Daily News calculations based on figures from Town Clerk Sandra Sartin.
Despite those recent hikes, the water and sewer fund is losing money, Chilcoat pointed out, because the town isn't making as much as it's spending to provide residents water and sewer.
Revenues, he said, are up from last year -- but that's strictly from June's rate increase.
Chilcoat said this was the third year in a row the town has reported a significant loss in the water and sewer fund.
In 2002, the town barely broke even, Chilcoat reported. The following years saw losses, of $34,000 in 2003, $57,000 in 2004 and $30,000 this year.
The problem, Chilcoat said, is that for the past several years inflation has driven up costs an average of 3 percent per year, and the town board hasn't increased rates until the last two years.
Prior to last year, water and sewer rates hadn't risen since 1994.
"It needs some attention," Chilcoat continued.
Commissioner Lou Leaming speculated the board would probably have to raise rates by the same amount it did this year.
"You need 20 percent just to break even," Chilcoat countered. He said, to allow for contingency, 25 percent is the minimum increase he recommends.
Growth, Chilcoat conceded, would help the fund's balance.
"The only other option is to let the general fund carry it, and then the state will not like you at all," Chilcoat warned.
According to Chilcoat, the town's expenses in its general fund also outweighed that fund's revenues.
The town earned $340,000 but spent $394,000.
Chilcoat pointed out this was because this year the town assumed a significant paving project that the board has "wanted to do for three years."
Chilcoat said waiting, as the board did, proved to be a more effective method for funding such a large job. The town also was able to pick up a grant, which absorbed much of the cost. Thus, an $84,000 project cost the town $34,000.
Chilcoat called it "one of the finest examples of good stewardship I've seen."
"In summary," Chilcoat concluded, "the financial position of the town as a whole is strong; the water and sewer fund needs help."
In other business, Commissioner Jeff Peed requested the board re-address the need for a new recreation board.
Peed said a board is integral to the recreation department's receiving grants.
The intent of such a committee, he added, would be to manage the department's funds and decide how to disburse money that the town receives each year from the county.
Currently, those funds are managed by the department head, and expenditures within that department must be cleared by the town board first.
According to Peed, the commissioners appointed seven area residents to serve on the rec board, but that board never really got off the ground and has been dissolved.
"I think we met twice and never had a full board," he said.
Mayor Joe Hooker said at the next meeting the board of commissioners would try to seat a new recreation board.
Police Chief David Arthur reported to the board Monday that he made his first arrest as Aurora's top cop. He said he was also working on hiring reserve officers. Arthur said he had three applicants the part-time position.
Upon Arthur's recommendation, the board passed a resolution to observe Halloween Oct. 31 from 6:30 to 8:30 p.m.
For more on the Monday's meeting, see future editions.
"The town is solid as a whole," Chilcoat said. "It's the individual funds that need attention."
Chilcoat singled out the town's water and sewer fund as in a state of emergency.
"I'm going to stand here today and say the same thing I said last year," Chilcoat said. "'You've got to raise your rates.'"
Chilcoat recommended an immediate increase of 25 percent on top of the hike residents have been feeling since July.
In June the board passed a budget that raised water rates by 15 percent and sewer rates by 10 percent. Last year, water and sewer rates increased by 10 percent each.
Chilcoat's proposal would bring the average user's monthlyl water bill to about $18.09. The average sewer bill would rise to about $22.48, according to Daily News calculations based on figures from Town Clerk Sandra Sartin.
Despite those recent hikes, the water and sewer fund is losing money, Chilcoat pointed out, because the town isn't making as much as it's spending to provide residents water and sewer.
Revenues, he said, are up from last year -- but that's strictly from June's rate increase.
Chilcoat said this was the third year in a row the town has reported a significant loss in the water and sewer fund.
In 2002, the town barely broke even, Chilcoat reported. The following years saw losses, of $34,000 in 2003, $57,000 in 2004 and $30,000 this year.
The problem, Chilcoat said, is that for the past several years inflation has driven up costs an average of 3 percent per year, and the town board hasn't increased rates until the last two years.
Prior to last year, water and sewer rates hadn't risen since 1994.
"It needs some attention," Chilcoat continued.
Commissioner Lou Leaming speculated the board would probably have to raise rates by the same amount it did this year.
"You need 20 percent just to break even," Chilcoat countered. He said, to allow for contingency, 25 percent is the minimum increase he recommends.
Growth, Chilcoat conceded, would help the fund's balance.
"The only other option is to let the general fund carry it, and then the state will not like you at all," Chilcoat warned.
According to Chilcoat, the town's expenses in its general fund also outweighed that fund's revenues.
The town earned $340,000 but spent $394,000.
Chilcoat pointed out this was because this year the town assumed a significant paving project that the board has "wanted to do for three years."
Chilcoat said waiting, as the board did, proved to be a more effective method for funding such a large job. The town also was able to pick up a grant, which absorbed much of the cost. Thus, an $84,000 project cost the town $34,000.
Chilcoat called it "one of the finest examples of good stewardship I've seen."
"In summary," Chilcoat concluded, "the financial position of the town as a whole is strong; the water and sewer fund needs help."
In other business, Commissioner Jeff Peed requested the board re-address the need for a new recreation board.
Peed said a board is integral to the recreation department's receiving grants.
The intent of such a committee, he added, would be to manage the department's funds and decide how to disburse money that the town receives each year from the county.
Currently, those funds are managed by the department head, and expenditures within that department must be cleared by the town board first.
According to Peed, the commissioners appointed seven area residents to serve on the rec board, but that board never really got off the ground and has been dissolved.
"I think we met twice and never had a full board," he said.
Mayor Joe Hooker said at the next meeting the board of commissioners would try to seat a new recreation board.
Police Chief David Arthur reported to the board Monday that he made his first arrest as Aurora's top cop. He said he was also working on hiring reserve officers. Arthur said he had three applicants the part-time position.
Upon Arthur's recommendation, the board passed a resolution to observe Halloween Oct. 31 from 6:30 to 8:30 p.m.
For more on the Monday's meeting, see future editions.
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