The Henry County Public Service Authority (PSA) Board approved its approximately $14 million fiscal year (FY) 2024-2025 budget on May 20. The budget holds water and sewer rates flat for the eleventh straight year, with funds included in the budget to study the need for rate increases in the future.
Currently, the PSA charges residential users $30 a month and non-residential users $45 a month, both based on 4,000 gallons/month, and $68.50 for institutional customers.
The spending plan is a five percent reduction from FY24. The reduction in the budget is attributable to fewer capital expenditures and less debt service due to a completed loan repayment during FY24.
Keith Heath, of The Lane Group, Inc., presented the 2023 Utility Operation Report. The PSA goes through an annual third-party review to ensure requirements match a bond trust agreement that came about in 1991. The group gives advice and recommendations to help the PSA remove smoothly.
“We reviewed a number of items related to this report preparation,” Heath said. “The PSA has operated for over 10 years with the same rate structure.”
The current median income in the county is about $43,000, with a 1 percent rate being equivalent to a water only bill of $36.41
“With respect to that PSA’s rate is a little bit under that 1 percent threshold,” Heath said, adding the current rates are lower than the recommended amount.
“The revenues and expenses fluctuate a little bit every calendar year, but by large they are fairly consistent,” Heath said, and noted that indicates the PSA is maintaining stability.
The “PSA has endured some hardships, as well as a lot of other localities around. with economic swings and with the loss or introduction of industries,” he said, but the PSA’s operating budget stays consistent throughout the year.
The agency PSA made $705,600 in interest income, which Heath said, “is very commendable to PSA to the PSA’s financial operations” and shows a positive growth in income. “That’s a very large number, it has not been seen in previous operating years, it’s a reflection of the financial times that we are in.”
Overall, the review was positive.
“We feel that PSA’s operating budget is fair, and consistent, it has been laid out well,” Heath said
The group did not recommend any changes.
The PSA also managed to keep the agreed $400,000 in reserve in case of emergency. Currently the account has more than $600,000.
“You are meeting and exceeding the required replacement reserve account,” Heath said, and added the agency met the requirement for the operating revenue reserve requirement.
The board reviewed a map of the current sewer and water system, showing where services were available in the county.
“A majority of the county’s citizens do have access to water services,” Heath said. The sewer system is smaller, with more than 7,000 customers, and the PSA is actively working to expand the water and sewer network.
The budget also included a three percent salary increase for all PSA employees, which will take effect on July 1. In addition, it contains a merit-based step increase for many employees that will take effect on September 1.
While PSA employees already receive full health insurance coverage, the budget includes a 10 percent reduction in spouse and family coverage. This will not only ease the burden on employees with families, but also enhance the PSA’s ability to recruit and retain dedicated staff members.
In other matters, the board:
- Accepted an annual report from the Lane Group regarding the organization’s compliance with their 1991 Master Trust Agreement with Crestar Bank. There were no recommended changes.
- Accepted monthly reports on Finance, Construction, Engineering, Safety, and Treatment and Regulatory Compliance
