Sewerage District expenses exceed revenues

Operating expenses totaled $880,671 and interest expenses amounted to $69,788 making the total cost for the district $949,788. At the same time, sewer fees only amounted to $584,234 and interest income totaled $1,556. Total revenues and transfers for 2021 amounted to $585,790, according to the audit.

The district spent $143,443 on operating expenses, $103,984 on utility expense, $57,491 in salaries and benefits, collection fees amounted to $52,562 and $454,477 in depreciation.

The district’s net position remained in the positive but shrunk from a prior year’s net position.

In 2021, the district assets exceeded liabilities by approximately $3.8 million. In 2020, the district assets exceeded liabilities by some $4.2 million.

Bolstering the net position was some $6.3 millions in assets for 2021. Total liabilities came to nearly $2.5 millions for the same year, according to the report. Total liabilities are equal to 30 percent of the total assets of the district.

The largest portion of the district’s net position, 92 percent, was its investment in capital assets such as equipment less related debt expended in the acquisition of those assets.

Another portion of the district’s net position was restricted to paying longterm debt in the prior year. The remaining balance of the net position, $314,696 or eight percent, may be used to pay current operating expenses and utility deposits. The district refinanced its bond from USDA to United Mississippi Bank in 2021.

The district has longterm debt of some $2.3 million, which was used to finance additions to the utility system. 

As of Dec. 31, 2021 the district had approximately $5.9 million invested in capital assets net of accumulated depreciation of some $8 million. It also had outstanding bonded indebtedness of some $2.3 million.

The district has a Sewer Revenue Bonds issued Aug. 21, 2003 in the original amount of approximately $1.4 million at an interest rate of 4.25 percent due in monthly installments of $6,423, including amortized principal and interest through Aug. 21, 2043.

The district has a second Sewer Revenue Bond - Rural Development, issued June 21, 2004 in the original amount of some $1.6 million at an interest rate of 4.375 percent due in monthly installments of $7,423 through June 21, 2044.

The bonds were placed with United Mississippi Bank on June 8, 2021 in the original amount of some $2.4 million at an interest rate of 2.5 percent with principal due in yearly installments beginning on June 1, 2022 with interest payable every Dec. 1 and June 1 beginning Dec. 1, 2021.

The district was created by ordinance by the Concordia Parish Police Jury in 1976 and provides sewerage and waste treatment services to rural areas of eastern Concordia Parish. It serves approximately 1,153 customers and has one full-time employee and hires part-time employees as needed.

The district is governed by five commissioners appointed by the Police Jury. Charles Turner, Melvin Ferrington, Eddie Nugent, Richard Crews and Cornell Lewis were the commissioners for the year ending Dec. 31, 2021. According to the audit, Kristie Sherbia was the agency head.

Silas Simmons Certified Public Accountants and Advisors performed the audit and listed one finding.

2021-1 Late Filing of Audited Financial Statements.

The district’s audited financial statements were not submitted to the Louisiana Legislative Auditor by the statutory due date of June 30, 2022.

Auditors recommended that the district has its books and records available in a more timely manner.