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| 7/28/2010 3:41:00 PM | Email this article • Print this article | Burlington eyes
rate hike
to pump up
water fund
Utility reserve fund had dipped below $100
Jennifer Eisenbart
STAFF WRITER
If there's a surprise lurking in the 2009 audit of the City of Burlington's finances, it has to be the state of the water utility fund.
According to accountant Pat Romenesko, who handled the audit on behalf of the city, the water fund balance - which is supposed to be maintained at about $420,000 - was just $67 at the end of 2009.
City Administrator Kevin Lahner said Monday that while the number wasn't necessarily inaccurate, it also didn't accurately reflect the situation.
"That was the auditor's on-record statement of funds for that account," said Lahner, who added that the issue was addressed during the budget process in 2009.
In fact, the water fund balance was one of the reasons behind a rate increase - 3.8 percent - for this year.
"We were aware of the cash issues of that fund," Lahner said. "It was one of the issues of raising our water rates.
"And we expect our reserve levels to recover."
The water utility fund covers the operation and maintenance of the water utility.
"It's everything to do with operating our water well and our water system and the employees that are funded by that," Lahner said. "When you pay your water bills, that's where the funds go for that."
Lahner did admit that the fund should not have gotten as low as it had in 2009. As of this week, that fund balance had recovered to $81,298 in numbers provided by the city.
"It really shouldn't have gotten that way," Lahner said. "We used reserve funds to pay for capital items. That's what contributed to that."
However, the problem might still not be fully resolved. The city is "seriously" considering another rate hike in the water utility, and Lahner said it would be part of budget discussions this fall.
Lahner did not have a number for the rate of the increase, but said the city is considering something called a "rate case" - the process governed by Wisconsin's Public Service Commission that would allow the city to raise the rates over the allowed amount.
"We don't know that yet," Lahner said when asked if the city's water rate increase would exceed that state amount.
The average water and sewer bill for the city now is about $170 per quarter.
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