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Century’s Gas Dept. Burning Through Cash Faster Than Customers Are Burning Gas
May 9, 2018
The Town of Century Gas Department is burning through cash faster than customers are burning gas, requiring the town supplement its operations from other funds.
The town’s accountant, Robert Hudson, told the town council that the gas department was about $62,000 in the red for the three month period February through April. And with the arrival of warm weather, there’s little chance of a profitable month before the end of the budget year on September 30.
“We are not selling much gas right now with the customer base we have,” Hudson said. The town sold about $150,000 in natural gas last December and January, but that dropped to $30,000 in February.
The council voted to transfer $5,000 per month from the garbage fund and up to $7,000 per month as needed from the town’s special revenue fund to supplement the gas department.
Council member Ben Boutwell expressed concern over transferring money from the designated special revenue fund following an audit that questioned the practice. Hudson said if funds could not be returned from the gas fund to the garbage and special revenue funds, it would be recorded as an operational transfer.
The audit for the fiscal year ending in 2016 found town’s general fund borrowed $285,248 from its special revenue fund to cover general operations of the town. As of September 30, 2016, the general fund owed the special revenue fund approximately $3.83 million. The revenues in the special revenue fund are restricted for specific purposes, and therefore, these funds will have to be repaid or it will be considered an inappropriate use of the restricted revenues, according to the audit.
The town council also voted to agree to an Escambia County ordinance that renews a 1968 franchise area. The franchise area includes Century, Bogia, Byrneville, Bratt, Oak Grove, Walnut Hill and McDavid. Century currently provides gas service only in a portion of their franchise area — near the town limits, south along Highway 29 to and including a portion of Highway 164, west into Byrneville and an area of Bratt.
The franchise area has been disputed by Pensacola Energy. [Read an earlier story..]
NorthEcambia.com file photo, click to enlarge.
Comments
9 Responses to “Century’s Gas Dept. Burning Through Cash Faster Than Customers Are Burning Gas”
Robbing ‘Peter’ to pay ‘Paul’ ends with each of them as poor as the other and both left with their pockets empty.
If changes aren’t made immediately and fiscal ethics aren’t adhered to, Century will drive itself into certain bankruptcy, ensuring that township will be dissolved in favor of the county providing the services that Century cannot fiscally manage. Avoiding services already available from other utilities is like cutting one’s nose off to spite the face.
How could somebody cry while walking away from THIS?
Did the town consult Attorney Dannheisser about this? What can the citizens of the town expect after three uncorrected audits of not repaying the misappropriation of funds, using the special funds to shore up another?
Would it be more appropriate to report this as a financial emergency to the Governor of Florida?
If you can’t sell the Gas Department to Pensacola Energy this will continue.
Unfortunately if ECUA takes over for in and PE for gas comes in it, if the town is no longer viable will most likely be more expensive for the residents than if the Town of Century can continue to supply utilities but if it is inevitable we need to know what to expect and not let it come as a surprise.
The town doesn’t report directly to the county but the state and they can send in people to help if the town can no longer take care of itself.
The joint legislative auditing committee, is starting to look at these type situations over the state. Palm Bay and our closer neighbor Defuniak Springs have been in the news for such recently.
I suggest Century look into this and let it be voluntary rather than suffer the embarrassment of it being mandated.
I don’t think you should trust the judgement of the accountant. He led the town down a wrong path before.
Gulf Breeze is also undergoing an audit requested by petition of the people, an operational audit, not a financial, so the attorney may advice Century to keep the eyes off them.
But they can’t, the eyes are on them, and you have one year of an audit that shows that money was spent inappropriately, so far. I don’t see where this is being turned around or corrected.
Be careful, I don’t want the people who stepped up to serve by the goodness of their heart be caught unaware and charged with misfeasance or taken advantage of by trusted advisors who would rather not be brought to light that they have misguided the municipality.
You can contact the Joint Legislative Auditing Committee or the Governor of Florida and ask them directly what to expect. You could place a phone call for discretion. be prepared.
How much longer until the Town of Century just collapses and folds?
CONTEMPLATING:
“David Green you should run for office”
Not a good enough liar.
David with deficiencies
David Green you should run for office, you have ALL the answers!!
It doesn’t state what expenses are draining the gas dept I just assume they are static expenses that don’t change with the volume of gas that is sold like payroll. The council needs to identify these expenses and see how they can reduce them. Maybe reroute employees to a different dept during summer months instead of hiring more.
Perhaps, they can examine how to take advantage of the franchise area to increase revenue. A grant will be needed here.
I wouldn’t sell the gas dept until all possible options are examined. Remember, the less we control the less we remain a town. We’ve lost so much already.
I guess the idea of cutting back expenses hasn’t occurred to anyone in Century’s government, yet.
The town needs all of you to switch to natural gas powered air conditioning. That way you will buy gas when it is hot as well as when it is cold. According to a 22 year old LA Times article: New natural gas central air conditioning units have an equivalent SEER as high as 27.
(You remove 27 BTUs for every BTU of input energy. I don’t see any listed as that efficient in the literature, though.)
http://articles.latimes.com/1996-05-26/realestate/re-8544_1_central-air-conditioning
And then there is the absorption type gas air conditioning system. Last year business. com reported
“New gas air conditioners use 30% to 50% less energy than electric air conditioning systems and the average gas air conditioning system lasts 2 to 3 times longer than an electrical unit. Gas AC units require relatively little maintenance and the environmentally friendly ammonia/water absorption process is ideal for areas with strict environmental laws.”
https://www.business.com/articles/buying-a-gas-air-conditioner/
This sounds a lot like the old kerosene powered refrigerators which used ammonia for the coolant (no CFCs) and had no moving parts. This would at least need fans
Robur seems to be the only manufacturer I can find, but maybe you would like to switch to help Century. (They also heat your water if desired with the waste heat, removing that household expense.
David for natural gas