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Figure 1: Sewer Fund – Estimated Revenues to Actual Comparisons 2014-15 2015-16 2016-17 2017-18 2018-19 Totals Estimated Revenues $693,784 $802,829 $934,694 $895,079 $821,105 $4,147,491 Actual Revenues a $639,322 $757,930 $698,523 $835,440 $837,222 $3,768,437 (Overestimated)/ Underestimated Revenues ($54,462) ($44,899) ($236,171) ($59,639) $16,117 ($379,054) a Actual revenues were calculated using billed revenue for residential, DOCCS and septic haulers. The Village’s reported revenues were $17,750 less than total actual revenue over the five-year period. The revenue variances were primarily caused by overestimated residential rents in four of the five years. Officials were unable to provide us with documentation to support their $115,000 (58 percent)2 increase in estimated residential rents – from $200,000 to $315,000 – between 2015-16 and 2016-17. The increase was most likely attributed to the anticipated installation of new water meters, approved in August 2016, which would more accurately reflect usage.3 Officials planned to bill four quarters after the new meters were installed and then address the need for a rate increase, which eventually went into effect in July 2017. However, even with the new meters and rate increase, residential rents still averaged $244,000 for the 2017-18 and 2018-19 fiscal years, significantly less than the $315,000 estimate. Village officials subsequently reduced estimated residential rents to more reasonable levels: $250,000 in the 2018-19 and 2019-20 budgets. Additionally, the Village charges $60 per thousand gallons for bulk disposal and received annual revenues, averaging approximately $34,000 over the past five years, from outside septic haulers. However, officials could not recall the last time the rate for these services had been adjusted. Additionally, the Board did not effectively monitor or manage its sewage disposal contract with DOCCS. According to the contract, DOCCS pays 75 percent of the annual operating and maintenance costs of the Village’s sewer fund4 in exchange for sewage disposal services. The contract also indicates that the annual contribution amount should be adjusted “not less frequently than annually… and based upon actual experience for the preceding period…” However, Village officials have not reviewed the contribution amount on an annual basis. The Village last requested an increase from DOCCS in March 2015 which increased the total contribution amount from $438,384 (effective since June 1, 2006) to 2 At this time the Department of Public Works Superintendent assisted in budget preparation. He separated from Village service in March 2018 and current officials did not find any records of discussions that provided details on the budgeted amount. There was also a turnover in the Treasurer and Mayoral positions with the current individuals starting in January 2017 and April 2017, respectively. 3 Sewer charges are based on the amount of water used. 4 This percentage is based on a formula involving the facilities’ wastewater discharge. It is not our intent to comment on this calculation but to focus solely on billing procedures and operational and maintenance costs of the sewer fund. Of f ic e of t he New York State Comptroller 3