Albany City Council hears audit report

Posted June 9, 2021 at 1:37 pm

Albany City Council, meeting for its regular session on Tuesday, June 1, with five of six members present, had a full plate to deal with during the approximate one hour and 20 minute session.

There were few votes actually taken, but a lot of discussion occurred and a couple of presentations were made.

Among the key items taken up included the city receiving its annual fiscal year audit report; concerns again of low or no water pressure at times in one area of the county; an update on the ongoing Duvall Valley water project upgrade; first reading of the 2021-22 FY budget, and for the second meeting in a row, the tabling of an ordinance “relating to duties of animal owners and providing for the control of animals running at large.”

The meeting began with Albany Mayor Lyle Pierce congratulating the CCHS Class of 2021 and reminding those present of the Murl Conner Memorial Highway Dedication ceremony that was held last Wednesday at the South Kentucky RECC building. (A separate article and photo of that dedication can be found on page 1.)

After approving minutes from the previous meeting, the council got into the agenda quickly, first by hearing the city audit report ending June 30, 2020 by CPA Sammy Lee, who reviewed key parts of the 51 page report, some negative and some positive.

Lee first noted that the water department still owed the city $184,000, but later in the discussion noted that since the water rates have been increased, that department should begin to get on solid footing.

He also again discussed the ongoing problem the state has that is adversely affecting all municipal budgets, that being the shortfall in the state’s pension fund, which has been going on for several years now.

The CPA said the state was about $50 million in debt in that pension fund and although cities and counties were currently not being forced to reimburse their share of the amount owed to the pension plan, it still shows up as a debt in their end of year audits.

He also gave a snapshot overview of revenues vs. expenses, saying the city was on the verge of going in the red if more revenues aren’t raised.

Lee also reported the water company had over $500,000 in uncollected water bills and owes vendors about a quarter of a million dollars. He also noted they were having the same problems with the state’s pension shortfalls as municipalities and other local governments.

He noted the importance of handling water leaks, but said with the recent rate adjustments in the water department, it had the potential of breaking even.

In the 51 page report, the auditor noted the higher retirement rates over the past five years and recommended more reconciliation between the water department and city hall.

He also added, “No government can go (spend) over budget without an amendment first being made (to the budget.)”

Lee ended his report on a positive note, saying “The city has the capability of getting out from under this.” He said it would take team work, and watching and being conscientious on how the city spends money.

Penny Dalton and some other residents from the Sugar Valley and Central Grove area then addressed the council about water pressure problems that area is again facing.

Dalton said a similar situation occurred back in February and three months later it is happening again, with several households having no water at times and/or very low pressure.

David Guffey with the water department said they had been fixing service lines for several days, but it has still not helped. He noted that officials from Rural Water were to be in Albany last Wednesday to help locate the problem areas and hopefully get them resolved. “We have been working hard to try and find the problem,” he said.

There was then a question asked of David Bowles of Monarch Engineers about the time line of when the new water line project to Duvall Valley would be complete, to which he replied “Hopefully by this time next year.”

This prompted Dalton to ask, “So we have to put up with this for another year?”

Councilwoman Tonya Thrasher then recommended that the city write down all names of residents who are affected and not charge them a bill on the days they do not have water.

Councilwoman Sarah Browning also recommended possibly working out something with the Wellness Center to allow those residents affected to be able to come and take showers when they are out of water.

All the residents who were at the meeting to discuss the issue did note they appreciated the water department and employees for their work to try and fix the problem.

City Clerk Melissa Smith said they would need a list of all those affected so their bills can be deducted.

Guffey estimated there may be about 75 total with about 25 that had no water at all at times.

Councilman Reed Sloan also suggested taking the minimum water bill and cutting it in half for all those affected by the low pressure or no water problems.

Although no official votes were taken, the council did agree to deduct bills for those residents for the times they did not have access to water.

Rick Stearns then addressed the council, asking about the police officer position left vacant by the resignation of former officer and police chief Chris Neal.

Neal’s resignation became effective at the end of May and the department currently has six officers who rotate shifts.

Mayor Pierce noted, apparently due to the tight budget, that it may be a while before they put anyone else on and no official action was taken.

Bowles then gave an update on the Duvall Valley water line upgrade project, saying the 60-90 day review was underway and saw no pitfalls in that process.

He also said all easements, with the exception of one, a resident who lives out of town, have been obtained. He said they have been unable to locate the owner, who he identified as Reba Norris Jackson.

Since the property owner owns land on both sides of where the line is to be run, it was noted that if they (owner) could not be found they might have to consider condemnation.

Otherwise, Bowles again estimated that barring any setbacks, construction on the project should begin by late summer and be completed by late summer or early fall of next year.

Bowles concluded his report by saying the $2.6 million water plant project through the Kentucky Infrastructure Authority should be approved soon.

It was also noted the city has received a $250,000 CDBG (Community Development Block Grant) to replace approximately 1,000 residential water meters within the city limits.

Second reading of the ordinance pertaining to the Duties of Animal Owners–Animals Running at Large, was again brought before the council and for the second time, did not see a vote being taken.

Councilwoman Browning, who had questions about the original wording of the ordinance, was still not satisfied with the document as written and asked what would happen when the city started telling people what to do (with their animals).

City legal advisor Norb Sohm said it was to try and “control running dogs.”

Charlotte Tuck, who works with the local animal shelter as well as the local spay-neuter clinic, was at the meeting and offered to help–free of charge–to put wording in the ordinance.

Sohm then asked Browning, apparently in reference to last month’s meeting when she recommended certain wording be changed, “I thought you were going to take care of this.”

Browning replied, “I think it could have been done better,” to which Sohm answered, “We have been offered help.”

Following the discussion, the council, for the second time without a vote actually being taken, verbally agreed again to table second reading to July.

In one of the few votes actually taken by the council last week, the city, on a motion by Thrasher, seconded by Gene Ferrill, unanimously approved first reading of the 2021-22 fiscal year budget in the amount of over $4,481,686.

(More details on the city budget will be published after second and final reading, which will take place at a call meeting later this month.)

Finally, Ferrill suggested the city request the state do road mowing in the area around the jail on Hwy. 350 (East Cumberland Street), which is a state right-of-way.

The next regular meeting of Albany City Council is scheduled for Tuesday, July 6, at 5 p.m. at City Hall and is open to the public.