Utility issues lead to heated discussions

A wastewater issue led directly to the rehashing of an unresolved financial debate over the standing of the Holly Springs Utility Department at the August 20 meeting.

It began with a discussion of an invoice involving work performed on the sewer system.

HSUD general manager, Wayne Jones, asked the invoice for about $5,000 for service be held until the September meeting.

“When talking on the topic of wastewater, this is a real problem,” Jones said.

He said the invoice is related to an old problem with some of the manholes going back to the prior administration. “It’s a problem that is going to come back to bite us in the end,” he said explaining that the sewer issues are a part of his 60-day report to the mayor and board on the utility.

The city has 23 sewage stations. Five or six stations are going to need to be replaced in the next five or six years, he said. The price to replace one can run between $50,000 to $100,000, he said.

Of immediate concern was a station on Highway 7 North where sewage was spilling over onto a private property. The owner called the Environmental Protection Agency, he said.

The utility is spending $2,400 monthly to temporarily pump the sewage off the private property.

Jones said the previous administration held off on repairing the station, then hired a company to measure and replace the apparatus, but when it was brought in, it did not fit. The city now has four or five stations that need maintenance work.

“I think that is just one aspect of the utility department,” Jones said. “We need to prepare for things now. We got more coming.”

He said HSUD has accounting issues and that the Tennessee Valley Authority is working to reconcile the accounts.

“We have accounts that haven’t been reconciled in years,” Jones said. “We have 767 work orders that haven’t been completed, some going back to 2019.

Then going into more detail about the accounting, Jones said the HSUD has about $1.6 million in checks that are being held - $810,000 held at the HSUD and $589,000 being held in the mayor’s office.

He said some of the bank account balances have not been reconciled.

“The (TVA) accountant told me, `you don’t have a budget, Mr. Jones, without knowing where your money is going to come from and where yours is, how it flows into the utility department and out of the utility department,’ “ Jones said.

The accounting practices need to be put in place as far as methods and processes and procedures that we have not been doing.

“And that is where we are at.”

“The lady from TVA also expressed to you that you don’t understand how it’s done, and that is part of the problem,” mayor Sharon Gipson said. “We never missed a payment until you were hired. I’m wondering what the motive is?

“I must say, since you are talking about certain things, as you are trying to set up your stage for something else,” Gipson began. “We never missed a payment until you were hired. Now that’s a fact.

“So, we knew there were issues in the department and Ms. Mason did an amazing job dealing with it. And we didn’t miss a payment until now. So, to come up and express and throw around accounting, accounting, accounting is a problem.”

Gipson pointed to Jones getting a contractor to manually read the meters, which she said was “a wonderful idea.”

“Unfortunately, you didn’t tell us that they would only read for us when New Albany did not need them, which means most of the time they were not here,” she said. “So, as we talk about issues and concerns, we must be honest about it and work as a team, because everybody had a rough go as far as coming in and figuring things out. Don’t throw employees under the bus. That is for executive session.”

“It was where this was going.”

Gipson said TVA is using the accounting as an excuse to raise the city’s rates.

“I’m wondering as to what the motive is there. What is the motive? That is the concern for me, but our ratepayers, right now, I don’t think they want an increase, but I see your working the way around far as what TVA is pushing.

“What we have to deal with is you share with me the facts.” Ward 4 alderman Patricia Merriweather entered the discussion.

“Well, the facts are, from what I’m hearing, there’s $1.6 million worth of checks in a drawer, there are over 767 work orders that have not been completed. There are over $585,000 in checks in the Mayor’s office. There are $810,000 in checks held by HSUD – bills that are not paid by the utility department.

“Now, you can sum it up. You can do word, search and word to twisting, which is fear tactics of manipulation.

“Mr. Jones has been hired by this board to lead the HSUD in areas that we have concerns about. I’ve been concerned about the finances of HSUD. We asked for clarity and transparency and for the first time it seems to me we are getting that to a certain degree.

“I trust Mr. Jones and I’m looking for him to continue with making sure that our ratepayers are getting their needs met in terms of services and where the money is. We do not have an updated audit that we can refer to see where the money in the utility department is. We don’t have a city audit, due for three years.

“The citizens need to know exactly where their money is. Not speculation, not guessing, not disjointed, but a concise report that shows where the money is.

“How much money came in July? How much money went out? You should be able to answer that when you come before this board to the citizens. There is not a citizen in this city that is not concerned about $1.8 million or $1.6 million worth of checks in a drawer. Who could do that and still have a job? And the audits not to be there.

“So, I understand what is being said very clearly.”

Gipson interrupted and both she and Merriweather talked at the same time.

Attorney John Keith Perry Jr. asked for one person to speak at a time.

Gipson said holding checks written to vendors is a practice that is sometimes done.

“Sometimes it’s a wait and send that check out and be strategic about it,” she said. “So, it’s not something that’s not normal.”

Ward 1 alderman Bernita Fountain asked to move on to the next item on the agenda.

“I’m not finished yet,” said the general manager.

Perry stopped him saying unless there was a specific point he needed to make that the next item on the agenda should be brought forward.