Money Down the Drain

At Tuesday's board meeting, Bobby Gibson had representatives from Nicolson and Associates address the public regarding the loss of $86,400 from the WSOM (Water/Sewer Operations and Maintenance) Account. Paige stated that the net decrease is representative of the customer payments, payments to suppliers, payment of principle accounts, the capital of investments and customer deposits. She stated that this was a trend and the amount will vary from year to year. Paige also stated that this trend will continue in the WSOM department until 2015 because of the CAP loan payments. She also stated that the CAP loan account for 80% of the money used in WSOM and that this debt obligation must be paid. Paige also stated that a possible reason for the net decrease could be the closure of several businesses, but didn't give a definitive answer on why the city has such a large deficit in WSOM. Paige also stated that the net decrease was the result of any improprieties on the part of the clerks. When asked if Nicolson and Company performed a full audit on the finances of the City of Lumberton, Paige responded with a very weak "yes." However, this answer varies from the one when she presented the audit report to the aldermen a few months ago. Back then, she said that the audit was not a full audit and the City of Lumberton could not afford to pay for a full audit. For some reason, her story has changed.
It was reported that no misappropriation of funds is responsible for the net decrease of $86,400 in WSOM. The board, or should I say, Bobby Gibson, wanted to make sure the audience didn't accuse Stephanie Mullings of stealing this money from the accounts. Although Paige side-stepped many of the points needed for clarity, the board is not willing to do anything about the lack of cohesion in the city clerk's office. It's apparent that the water bill collection policy is not being followed and that is the reason for the deficit of $86,400. On the same agenda, there was an agenda item asking for a water adjustment for Y. Robinson in the amount of $415.90. Mullings said that the person had moved and forgot to inform anyone that she was moving and she accumulated this bill after leaving town. For several months, the water was left on at this location. According to the water bill policy, any bill paid after the 10th of each month a late fee is charged and if the bill is not paid by the 24th the water is cut off. If they are adhering to the water bill policy that is printed on everyone's water bill, then the water to this person's house should have been turned off. Instead, no late fees were charged, the water was never disconnected and the person continued to accumulate a water bill which is now $415.90. It is my belief that this is the reason why we have an $86,400 deficit in WSOM because the water bill policy does not apply to certain individuals and the waiving of late fees and disconnect fees has added up to over $86,400.
Nicholson and Company suggested that the city hire an account for checks and balances, but they board has never followed that recommendation. On Tuesday night, the voted to start advertising for an account, but I can't wait to see how long it will be before they actually hire the accountant. I know you may not want to hear this, but in the very near future, I guarantee you that this board will vote to increase the water and sewer rates. As a matter of fact, they're probably going to raise the water and sewer rates long before they hire an accountant. So, when you get the notice about the increase in water and sewer rates, remember that I told you it would happen.