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Girard makes $271,000 headway in reducing its water-fund deficit
The fund’s deficit led some to oppose the purchase of new water meters.
GIRARD — City officials here say a more-aggressive approach to collecting on delinquent accounts and past investments in infrastructure are the keys to a reduction in the water-fund deficit.
Records from the city’s auditor’s office show the fund for the water department to have been in the red by more than $698,000 at the start of this year.
The fund is still in the red, but the amount has dropped to $427,000 — a difference of $271,000.
Mayor James Melfi said it is important to note the reasons for the deficit in the water fund in the first place, including: the $234,000 annual payment for the Girard Lakes, increases in expenses for water, failing internal mechanisms that had to be fixed, the overall economy and the loss of Indalex, the business that purchased a lot of water.
“I recall saying last year that the fund would get better. That better came today and it came in a big way,” said Melfi of the $271,000 deficit reduction.
“The rate increase has come into play for us. We have also taken an aggressive approach to collecting delinquent dollars. That means shutting people off. We don’t want to do this, but of course, in business sometimes you have to.”
Safety-Service Director Jerry Lambert said the city has been shutting off water to delinquent customers.
About 10 percent of the city’s 6,000 water accounts were delinquent.
The mayor said he does not see the water-fund deficit eradicated completely by the end of the year, but he anticipates an even further significant reduction in the fund.
The city, if permitted to lend money to the water fund from the general fund, could possibly cover all funds and exit state-imposed fiscal emergency in the near future.
The deficit in the water fund is what led some city officials and residents to oppose the purchase of remote-access water meters in 2008.
Melfi said there will always be, even with a diminished deficit in the fund, those opposed to investments such as new water meters, but council has to take the initiative to make the purchase.
“The city is behind the times with the current meters. There is no question that we could be more efficient with the new meters,” he added.
jgoodwin@vindy.com