Nevada County Picayune and Gurdon Times Newspaper Archive

Water Department Audit Clean

Books for the Gurdon Water and Sewer Department are all clear, according to the annual audit.

Ronny Rodgers, with Taylor, Rodgers, Turner and Malone Ltd. Certified Public Accountants, said everything looked good from their study.

In fact, the net assets for the department increased about $370,000, putting it in a "good cash position." Rodgers said this was a healthy increase in assets.

On the other hand, though, the liabilities also increased because the department has received more federal monies for construction projects.

Rodgers said the department showed a $94,000 profit for the recent fiscal year. "It's a good looking set of financial statements," he told the Gurdon Water and Sewer Commission at their monthly meeting.

He suggested the bonds be increased on department manager Harold Hurst and officer manager Rhonda Spruill. Currently, the two are bonded for $25,000. But, as Rodgers pointed out, the department brings in about $50,000 monthly. The board agreed and voted to increase the bonds on Hurst and Spruill.

Rodgers asked if the accounting system was adequate for the rural water project and was informed it is not at this time.

Hurst said the accounting is currently being done on a 60-40 split with water and sewer for the part of the project with sewer service. For the remainder of the project, it is being handled on 100 percent of the water accounts.

Hurst said this system will work for revenue. He told the accountant the lending agencies didn't want the department to look at the project as a separate system, but as one system and preferred not separating the accounts.

In other business, the commission addressed the issue of a dying tree.

It seems the tree's root system was damaged several years ago when the sewer system was installed in an alley way. However, photos show the tree has also been hit by lightning.

The owner of a nearby house has asked for the tree to be removed before it completely dies and possibly falls on their home.

However, the question has arisen as to who is responsible for paying to have the tree removed.

Gurdon Mayor Rick Smith pointed out the sewer line was installed in 1992 and did damage the root system. He said it is not the responsibility of the Gurdon Street Department to have the tree removed.

He said the sewer line caused the damage and the Water Department should pick up the tab. Smith said the tree is in an alley maintained as a right of way for public utilities.

The debate ranged from idea to idea, such as seeing if Entergy will help, or possibly pay for having the tree felled, because its lines are also in the alley, to having the homeowner see if their insurance will pay for part of the removal.

Hurst agreed the roots were damaged when the sewer system was put in, but said it's been five years. The department's warranty, he said, has a one year period with a three-year statute of limitations.

He said if the Water Department takes this tree out it could set a precedent for others with damaged trees.

The department agreed to contact Entergy and see if the utility company will help defray the cost of having the tree removed.

Once it is determined what Entergy will do, the commission agreed to get at least two bids from licensed tree removers to have the tree felled and cleared away.

The commission added there will be a disclaimer stating the department will not be responsible for removing damaged trees after the one-year warranty and three-year statute of limitations expires.