BENTON – Since Bobby Gifford took over as Superintendent, along with five new commissioners at the North Marshall Water District in 2011, they are leaps and bounds away from the problems of the past.
Jerry Miller, Board Chairman, came before the Marshall County Fiscal Court on Tuesday, expressing that he felt with the new court in place, it was a good time to introduce the board members and to talk about, “where they’ve been, where they are and where they are going.”
Along with Miller, the four other board members are Kendra Capps, Billy Driskill, Jamie Leonard and Larry Draffen.
Gifford addressed the court informing them of all the positive changes that District has made since the problems of the past.
“We want our customers to understand that we’ve moved light years past the problems”, Gifford said. “Myself and the commissioners have made numerous changes that have either saved money or made money for the District.”
North Marshall Water District Improvements
Gifford step by step went through the improvements starting with their travel policy, saying they no longer give credit cards to everyone and that there is just one that stays at the office.
A purchase order must be filled out for every item with Gifford adding, “We don’t buy a pencil at North Marshall Water unless we have a purchase order for it.”
The District has re-done their bidding policies and have incorporated a new set of by-laws and general operating policy.
Accounts that were found within their new software that were never closed out or needed updating have been fixed and taken care of along with 260 customers or locations with zero reads due to various reasons.
The District’s website has been updated making it easier for customers to find the information they need.
They have updated meter reading and billing software and now run two trucks throughout the District to detect leak alerts on a daily basis.
A two, five and 10 year strategic plan is in place for depreciation costs, expenses, rates, inflation, capital investments and debt service that is monitored continuously.
A hydraulic study of the distribution system shows the District the adequate size line to be installed Gifford said, “for now and 20 years down the road.”
Customer service files are kept up to date with everything in writing and adjustments made to their budget and general ledger.
New superintendent and commissioner policies are in place as well as maintenance schedules for plants, wells, tanks and pumps.
The proper insurance policy is in place to meet the District’s needs.
They have reviewed or canceled contracts concerning areas of water tanks, billing software, cathodic protection of tanks, uniforms, phone and chemicals.
The District has a new and revised personnel policy and offers online billing and payments.
In 2011, the District’s water loss was 22.8% and in 2013 improved to 7.6%.
Board members receive detailed monthly budget analysis and cash flow statements.
Gifford said they searched for a new software program, unable to find what fit their needs, then worked with Jeff Holley who designed a program for them that tells exactly what is spent in all areas of the District.
“The state wants to adopt our plan to put everywhere”, Gifford said.
2014 Financial Report
- 2011 debt service was $220,000
- 2011 line of credit was $225,000 paid off by the new board in 2013
- $122,000 payment to KIA (Kentucky Infrastructure Authority) paid off by new board in 2014
- Reduced loan amount for meters by $300,000 (2011-2014)
- In 2011 had $0 depreciation account, $90,000 depreciation account in 2014
- Goal is to have $140,000 in the depreciation account by 12/2015 and $750,000 by 2019 which would give the District a half year of operating revenue for any type of emergency that could arise.
- Created tank maintenance fund in 2013 with a balance of $120,000.
- The goal of the tank maintenance fund is $800,000 in ten years.
- The new board inherited a loss of $735,862 (2006-2010), loans or reserve funds were used to incur an additional loss of $1,505,654 which totaled $2,241,512 due to not taking in enough money to pay bills.
- The PSC (Public Service Commission) recommended a 30% increase in 2010 and the District chose a 20% increase which created a positive cash flow.
- The debt service of the current on-going project for 2016 will be $267,000
- The debt service of the current on-going project for 2026 will be $102,836.
- The District will have a $2.5 million borrowing cap for emergencies if needed and could absorb it through their budget.
- The current project total cost is $4,692,000 of which $750,000 is coming from a grant, leaves the District financing $3,942,000.
- The terms of the financing is 2.75% for 40 years which the District does not plan to let span that length of time. The plan is to pay on $1.4 million in 10 years.
- Customers will see a $3 increase that will start within the next six months to help the District pay this off in a timely manner.
Jerry Miller said the response to the $3 increase has been positive and with the increase, customers of the North Marshall Water District will still receive the second lowest average water bill in the state.
“We don’t want generations down the road to pay for something that we are doing now”, Gifford said. “We want our customers to understand, it’s hard for an increase, but we are doing absolutely everything we can to insure that every dollar we spend is worthwhile.”