The Mamou Town Council went over last year’s budget, which included gas leaks from old lines that are hampering the overall budget, during its meeting on Thursday, July 18.
Thursday, the council heard from CPA C. Burton Kolder, who provided the audit report for the town. Kolder said a significant gas loss occurred in the Gas Utility Department. Despite efforts to locate and repair gas leaks, this loss has remained virtually unchanged from the prior year. The town should continue to investigate possible reasons for the significant gas loss and continue efforts to reduce the loss.
Mayor Ricky Fontenot said they have dismantled some of the old lines. “We’ve been hiring professionals that are supposed to know what they’re doing. All they’re doing is finding gas leaks. As they find them, we try to repair them, and they’ve been finding tons of them. Hopefully we’ll see a big difference in next year. We all have to understand that this has been going on for about thirty years. Our gas lines are old, galvanized lines that are rotten and leaking, so as we find these things we repair them. There’s still a lot of work to be done.”
Kolder went on to explain the gas department expenses and revenues, saying, “Overall, total operating expenses did not go up that much. The town sold about $60,000 more in gas in revenues, and yet cost (expenses) only went up by about $8,000 in total, from $516,000 to $524,000.” Total operating income (surplus) for the gas department was $133,794 last year, and this year it was $188,513.
As for the water department, Kolder said last year’s total operating revenue was $552,616, and this year it was $550,048. Water department total for operating expenses last year was $454,456 while this year was $434,043. Operation income (surplus) for the water department last year was $98,160, and this year it was $116,005.
In regards to the sewer department, total operating revenues last year was $503,769, and this year it was $494,418. Total operating expenses for the sewer department last year was $425,683, while this year it was $370,376. Total operating income (surplus) last year for the sewer department was $78,086, and this year it was $124,042.
Kolder said operating income total for the utility fund was $428,560 for this year, and $310,040 last year. “The town did significantly better in this particular department, even though the gas loss did not go down much from the prior year. It’s a good sign. Mamou’s always been good about this. In the prior years you’ve always made money, which you should, in your utility departments,” said Kolder. He then asked the mayor if they were going to be spending money on bonds.
Mayor Fontenot said, “We’re waiting to redo our water system and dig a couple of new wells. It’s going to be a big, big project.” Fontenot said they will be issuing bonds within the next 60-90 days. Kolder asked him how long he anticipates it will take. Fontenot said it could take up to three years. “The biggest problem we have, nothing is on the map. Nobody knows where the water lines are, gas lines are, nothing is mapped out. Our plan is to change every galvanized pipe that we have. I say that about the gas lines, the water lines are the same thing. They’re old. They’re breaking, and so we’re going to replace all of those and dig two new wells,” said Fontenot.
Kolder asked if the town can map the system and find out where the lines are. Fontenot said, “Once we start running water back through it and finding out where these leaks are, we’ll replace them. It’s going to be a big undertaking.”
Mamou currently has three wells. They will replace two wells and keep the third for emergencies. They will also switch from the Evangeline aquifer to the Chicot aquifer. The two new wells will be at the Chicot aquifer.
Further in the audit report, Kolder said, “This town has no bonded debt.” However, as the mayor indicated, they will be issuing bonds in the next three months to do significant repairs to the water system.
Kolder said total expenditures for the town of Mamou was $4,622,750, which is $304,464 less than the budgeted amount of $4,927,214. “That’s significant. It’s 6% less than what you thought,” he said.
Mamou anticipated having a deficit of $591,362, but actually had a deficit of $328,148. “It’s $263,000 better than what you thought,” said Kolder.
Kolder said the Mamou operated at a $307,000 deficiency for the year. After a $200,000 depreciation, it is about $100,000 deficit. Kolder recommended shaving expenses and enhancing revenues, suggesting looking at the utility rates. “I wouldn’t want y’all to do what some other municipalities have done and wait many, many years and don’t do anything about it,” said Kolder, “so you want to look at having a plan that you can at least go up with the inflation rate.” As far as the general fund, after transfers, showed an increase in the ending fund balance of $4,735.
Fontenot responded, “We’re actually doing that. We also see the trend where what you bought ten years ago is twice the amount. Sewer pump goes out we used to pay $700, we’re at $1,400 now. It’s been ten years, and he’s absolutely right. What we don’t want to do is wait and go up a big percentage. The thing to do is, every ten years you want to go up to stay afloat, and that’s what we’re working on now. We’re trying to see that we can get a plan together and so by next year we can go up on our rates. Not outrageously, but enough to where it’s affordable for the people.”
Kolder suggested getting a three-or-five year plan and adopt an ordinance that says the town will make a decision based on the consumer price index or some other mechanism to keep up with inflation. The goal would be to have it built into an ordinance so that it would be automatic with the budget. He said maybe electronic meters could help with the situation, as well.
At the conclusion of Kolder’s summary of the audit report, Mayor Fontenot thanked Kolder and the council members and staff. “What we try to do here is not waste money, but there comes a time when you have to spend money. We often have meetings where we try to put our heads together and figure out what we can cut. It’s beginning to be harder and harder to cut things as we watch materials rise and rates stay the same. It’s beginning to catch up with us,” said Fontenot.
The audit report is 73 pages and is a matter of public record. The report is available from the Town of Mamou upon request.
Further at the meeting, a citizen addressed the council with questions about his business and a local ordinance that affected his business. The citizen was not on the agenda to speak at the council meeting. Mayor Fontenot said, “I’m not going to get into that with you. If you have a complaint, you can come to the office and talk about it.” Fontenot then made a motion to adjourn, and the meeting concluded. The citizen persisted with his complaint, eventually leading to him being escorted by a police officer out of town hall. As he was being escorted out, he claimed he was lied to by the town with regards to the ordinance. He also told the police officer she did not live in the town and claimed harassment. The citizen was ushered out of the building.
Image
NANCY DUPLECHAIN Associate Editor