So folks is this a nothing burger or something different? It isn’t often that those close to the target of the investigation discloses it to the public in the newspaper:
That story stuck with me with a few reasons as the JCUA has shown up in the news for another reason too:
Cities vote to sue: You spent $159M on county, not us ~ Karen Nelson
So now we have an FBI Investigation that Supervisor Randy Bosarge implies may be related to political infighting on the Utility Authority Board. I guess my question is if that is true and its a bunch of dogs fighting over the same piece of meat, who is minding the doghouse because the Utility Authority lost a boatload of money in 2016 along with violating its 2016 Bond Issue Covenants. (H/T to a concerned reader)
The Authority’s 2016 Operating Loss was a staggering 25.33% of revenues (PDF Page 15). While it is true the loss was caused by a non-cash item in Depreciation it would also be true that to the extent the cash profit was caused by Depreciation means current operations are being funded out of deferred maintenance. The Authority’s Unrestricted “Net Position” was a deficit of $7.95 million (PDF page 14), which may explain why the Authority did not set up the “System Revenue Fund”, the “System O&M Fund” or the “renewal and replacement fund” as required by the 2016 Bond Issue Covenants (Page 51).
What would be interesting to compare and contrast with other utility authorities would be the percentages of annual revenue spent on Contractual Services and Payroll.
I suspect we’ll be having more on this.
Meantime over in Hancock County the Solid Waste Authority can’t even produce a 2016 Profit and Loss (Unaudited) that is responsive to a recent public records request made by Lana Noonan of the Hancock County Alliance for Good Government. Lana reports that the 2016 audit is months away from presentation but that is another post while I await a phone call from new solid Waste Authority Board President Jeremy Burke. Stay tuned.