P.E. Co. Will Spend $329,599 on Utilities in 2015 with Revenues of Only $1632

This is the second Southside Messenger article on large Prince Edward County expenditures contained in the proposed FY 2015 Budget.

Contained in the proposed Prince Edward County Budget for Fiscal Year 2015 are four accounts related to utilities: Water Fund-Revenue, Water Fund-Expenditures, Sewer Fund-Revenue, and Sewer Fund-Expenditures. These expenditures are primarily the result of two decisions made by Supervisors in 2008 and 2009.

In 2008 and 2009, Prince Edward Supervisors were making plans to develop a County water and sewer system, using the Sandy River Reservoir as the water supply. In November, 2008, Supervisors voted to purchase the water and sewer lines that serve the Manor (formerly Poplar Hill) Hotel and Conference Center project and privately owned land nearby. In December, 2009, Supervisors voted to enter into an Interim Agreement with Crowder Construction Company for Design and Construction of the Sandy River Reservoir and Distribution Project. Of course, the Manor Hotel and Conference Center was never built and only a few cottages were built nearby on private land. In addition, the Sandy River Reservoir project was finally halted after overwhelming citizen opposition.

Supervisors paid $2.5 million dollars to purchase the utility infrastructure to the Manor project and spent approximately $2 million toward the engineering interim agreement on the Sandy River Reservoir project. The 2015 payment toward the principal and the 2015 interest on the debt to pay for the interim agreement and the water portion of the utilities purchase are included in the County Water Fund-Expenditures Account. The FY 2015 principal on this debt is $100,448 and the interest is $133,916. The 2015 principal and interest payments on the sewer part of the utilities purchase are included in the County Sewer Fund-Expenditures Account. The FY 2015 principal on this sewer debt is $37,475 and the interest is $49,960. The Miscellaneous cost for the water and sewer operations are estimated to be $7,800. So, the total 2015 principal, interest, and Miscellaneous costs for Prince Edward water and sewer is $329,599. The projected income for water services is $777 and $855 for sewer services, for a total of only $1,632.

It is traditional to include depreciation costs of fixed assets, such as water and sewer infrastructure, as expenditures. The total depreciation for both the water and sewer systems for FY 2015 is $87,000. The total 2015 Expenditures, including depreciation, for the water and sewer systems would be $329,599 + $87,000 or $416,599, with revenues of $1,632. Supervisors Howard Simpson, Bobby Jones, and Charles McKay voted for both these utility projects, along with former Supervisors, William Fore, Sally Gilfillan, James Moore, and Mattie Wiley. Former Supervisor Lacy Ward Sr. voted against both of these projects.