Albany City Council met last Tuesday, February 2 in regular session with five of six members on hand and a limited agenda, with the majority of the almost one-hour session reviewing the 2015 year audit.

Albany Mayor Nicky Smith opened the meeting by thanking city employees, primarily those of the street department, for their work during last month’s severe winter storm.

The mayor also noted there was no changes in the city’s water related progress report since the January meeting and no one from Monarch Engineers was on hand to deliver any type of update.

The council then reviewed the past year’s city audit with Auditor Sammy K. Lee, who highlighted the financial aspects of the city’s general fund and water and sewer department, with the latter again being somewhat in the red, due primarily to depreciation, according to Lee.

The general fund, although in good condition, is projected due $820,000 from the water department side, something that has been cumulative over the years. The city does have total assets of $2.8 million, the auditor noted.

One major aspect discussed at various times by the council and auditor, and one that may be a concern for all cities, counties, etc. in the long run, is the fact that Lee said the state was $9 billion underfunded in its retirement system, and that unfunded amount, at least on paper for now, is being passed down proportionately to individual entities such as municipalities, county government, school districts and others who pay their employees’ retirement.

Lee said the city of Albany’s proportionate share of that aforementioned state shortfall was an estimated $1.2 million. “I don’t know what that means right now,” said Lee, adding the state wanted auditors to recognize the city’s share in the report. “You (city) may owe sometime in the future.”

When council member Tony Delk asked how the city could be expected to pay for it (retirement), Lee said it would probably have to be by floating a bond issue, indicating that is the only way most entities could afford to fund it. The CERS (County Employment Retirement System), went into effect June 30, 2015.

Lee said the problems with the underfunded retirement system has been coming for years and the numbers in the audit are projected from the number of retired employees who have already paid into the system.

The city of Albany has been participating in the employee retirement plan for the past 12 years.

Lee then turned his attention to the water and sewer department’s receipts and revenues, noting that $789,000 from the pension liability had been added to the books, but said if the city opted out of the plan, the money would have to be repaid.

The water department overall, he reported, has assets of $33.5 million.

The city has a positive total in revenues of $356,000 in the general fund but a negative in the water and sewer portions, of about $754,000. However, he noted of that deficiency amount, $1 million of the total was due to depreciation of overall value of assets.

The auditor again noted in his report he felt the city should try and do more in collecting unpaid water bills.

Councilman Delk also questioned that if the water department was operating with those numbers, was it feasible to undertake a new water line project along the bypass.

Lee noted that the line could cause future development and more revenue for the water department. “You’re (water) not in bad shape, but there are a couple of things that could be done to help with revenues,” he said.

Following the audit review and discussion, the meeting was adjourned.

The next regular meeting of Albany City Council is scheduled for Tuesday, March 1 at 5 p.m. at city hall and is open to the public.