NEWBERRY — The Newberry County Water and Sewer Authority Board of Directors received an unmodified opinion, the best opinion to receive during their 2019 Financial Audit.
Larry Finney, with Greene Finney, LLP, reported the Authority had a total net position increase from $1.3 million to $23 million and a net investment in capital assets of $21.5 million. A restricted net position of $1.3 million for debt service and capital improvements decreased $44,000.
In the Authority’s water and sewer fund, Finney reported an unrestricted net position of $195,000. Excluding the Net Pension Liability of $1.9 million and OPEB (Other Post Employment Benefits) Liability of $0.5 million — net pension is $2.7 million which is 60 percent of 2019 actual operating expenses and 75 percent of cash expenses.
Operating revenues for 2019 came in at $4.40 million ($3.3 million from water revenues and $1.1 million from sewer revenues) — this is a $27,000 (one percent) increase from 2018 primarily due to higher rates in current year and more customers offset by less usage. The operating revenues also came in at $151,000 (four percent) higher than budget. This was primarily due to higher water sales and water connection fees of $89,000 and higher sewer connection fees and other sewer revenues of $78,000.
On the expense side, the operating expenses for the Authority totaled at $4.45 million for 2019 ($2.10 million in water expenses, $877,000 in water plant expenses and $1.48 million in sewer expenses). Operating expenses increased $75,000 (two percent) from 2018 due to higher operation and payroll — this is $173,000 (five percent) less than budget (cash items). Non-cash items totaled at $643,000 (210 percent) over budget.
Other items of note included in Finney’s presentation included:
• Total long-term obligations outstanding at June 30, 2019, were $4.04 million — decrease of $233,000 from June 30, 2018.
• Authority issued the 2019 RDA Newberry Shores Loan in FY 2019 of $1.69 million — proceeds are being used to refinance the 2018 Revenue Bond Ban that was used for interim financing on the Newberry Shores project.
• Total debt service payments for 2020 on outstanding debt is expected to be $348,000.
• Authority has more than covered its net revenue bond covenant — 279.4 percent (120 percent is required — 150 percent set as internal benchmark).
• Other post employment benefit liability increased $5,000.
In other business, NCWSA Manager Brent Richardson reported that a booster pump, two butterfly valves and two actuators were ordered for the Macedonia Booster Pump Station. A Sanitary Survey was conducted on NCWSA’s water system where the Authority received a “satisfactory” rating.
In water distribution, there were eight reported main line leaks at US Highway 76, Bonner Baxter Road, Grant Drive, Rabbit Hill Road, Ira Kinard Road, Macedonia Church Road and Jollystreet Road. Seven new water services were installed.
Wastewater Collection also reported two main line leaks at Meadow Brook Road and Conifer Drive. Pump station repairs included: Lake Murray Water Treatment Plant (installed replacement pump), Dusty Road (installed rebuilt pump) and Macedonia Church Road (installed rebuilt pump). Five new sewer services were installed.
Daniel Quattlebaum, NCWSA assistant manager presented the Financial Report for the month.
Water revenue came in at $317,136 against a water expense of $271,648 for a positive result of 45,488. In sewer revenue for the month, the Authority had a revenue total of $91,996 against a sewer expense of $100,390 for a loss of $8,394.
Noteworthy items included in report:
• WTP (Water Treatment Plant) Maintenance: $15,000.
• WTP Lab Equipment: $10,000.
• Macedonia WTR (water) Pump Station Maintenance: $10,000.
• Sewer Pump Station Maintenance: $19,500.
• Accounting Services: $16,000.
Other business:
• A motion was made by Board Member Brian Alvarez and seconded by Board Member David Wiseman to authorize $25,000 to proceed with Bedford Way Closeout procedures.
• A motion was made by Board Member Terry Rawls and seconded by Wiseman to provide authorization to execute the construction project and notice to proceed for the Mid-Carolina Commerce Park — Water Main project.