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Century’s ‘Cash Cow’ Is No More As Gas Department Revenue Declines
June 8, 2017
The Town of Century’s gas department used to be a “cash cow”, creating a very profitable revenue stream for the town, according to their financial advisor. But now that revenue is decreasing, expenses are increasing and the future of the department could be in question due to a huge decline in customer base.
The concerns were expressed by the town’s accountant, Robert Hudson, at a recent town council meeting. Hudson said the gas department lost $16,000 during the first six months of the fiscal year. What’s worse, he said, is that those six months — October through March — are the coldest of the year when customers use the most natural gas.
Hudson said the town is at a “bare bones” level to maintain the system. Years ago, he said, Century had some 1,300 natural gas customers, but with only 500 customers bearing the cost of the system now, things are much more difficult.
The declining revenue is being blamed on an increasing number of customers switching to electricity and the loss of a number of homes in the town, primarily due to the February 2016 EF-3 tornado.
The town’s water and sewer department showed a $46,860 deficit during the first six months. The town recently raised water and sewer rates by $200 per year for the average family to help eliminate shortfalls, and the town has sent an additional $31,000 bill to the prison to cover increases allowed under contract.
Overall, the town’s financial picture showed about a $47,000 revenue shortfall the first half of the year, but the town expects to offset that loss with the increased prison water bill, a more accurate water meter at the prison, some $18,000 from the state for mowing the Highway 29 right of way, and increased rates.
Due to the gas department shortfall, the Century Town Council voted to make a $33,000 gas department debt service payment using economic development funds.
Alicia Jernigan, water and sewer department head, last month identified $430,000 needed to fix “critical” problems with town’s water and wastewater facilities. The town council voted in May to transfer $172,000 from a $229,000 reserve fund to make some of the critical water and sewer system repairs.
Pictured: The Century Correctional Institution is town’s biggest water, sewer and natural gas customer. NorthEscambia.com photo, click to enlarge.
Comments
5 Responses to “Century’s ‘Cash Cow’ Is No More As Gas Department Revenue Declines”
There are businesses all across this great country of ours that face the same problem annually and they manage to keep their doors open. Why is it the ones run by the government cannot function in difficult times?
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0100-0199/0171/0171.html
They should have a copy of their own Comprehensive Plan. This is the Florida Law regarding the procedures.
From the CP Look it up.
Objective 2.3
Policy 2.3.1
sign sealed delivered 2011
Look –I know that last post sounded angry. I am frustrated when I see these types of stories and want solutions, simply put. I want Century to be successful and thrive. I should apologize but if it motivates some one and it is the right thing then there it is, if I am wrong then my bad. I generally try to be respectful and supportive always.
Yes I know the services go out into other areas but from my knowledge and if some one will explain it to me differently much appreciated actually–I think usually a municipality extends the service, people come into the fold of the town, collectively a small amount of property tax goes into the budget from all the users and the town there fore sustains itself, is what I meant.
I wonder if they could run service to many other customers and “sell” to them.
Isn’t that how it works?
>>Exercise the power of annexation
Century does not need to annex to gain gas customers. Their franchise currently extends past Walnut Hill and down to McDavid. They don’t actually provide service in a lot of that area
Suggestions to the Town Council and Mayor and Staff.
Have the developer for the new apartments amend the plan to go to gas heat.
Exercise the power of annexation that was adopted in the comprehensive plan. The Urban Service Boundary was drawn up and services provided with the intent to annex and include these customers into the tax base. One way to encourage this is to double or triple their rates to encourage them.
Or begin the process of giving the town government over to the county and call for a referendum before you run it into the ground with debt given to the citizens when we vote to incorporate and you all lose your jobs. You live here too.
The CRA was to be formed last year and Comm Barry offered his staff. Why a year later and paying a legal fee that the consultant has to tell you to do?
A town councilor doesn’t mean they let you come over and talk and that they will pray for you necessarily. They duties are not to be a guidance counselor.
Run the town like the incorporation it was intended to be.
Poop or get off the pot.