With caution about an insufficient sewer rate, Oakdale Finance Director Albert Avila presented the city’s annual audit report to the city council at its May 20 meeting.
“We have some issues with our sewer enterprise (account) and need to look at it on how we set our rates,” Avila said.
It comes as no surprise about the rate deficiency as the council in previous months has discussed a potential rate increase for the city’s rate it charges customers.
Last year Oakdale fell short in its wastewater treatment plant loan payment of over $800,000 paying only a partial portion of the loan. The city also failed to have the required $850,000 in reserve of the enterprise account for the debt.
In November, the council moved forward with a $28,500 utility rate study that would very likely raise water and sewer rates to help the revenue shortfall of the wastewater fund.
The audit report for the 2011-2012 fiscal year was conducted by the public accounting firm of Moss, Levy, and Hatrzheim of Culver City and gave the city an “Unqualified Opinion.”
“An ‘unqualified opinion’ is the highest level of opinion that can be issued on audited financial statements,” Avila said.”
Avila explained that an ‘unqualified opinion’ means it is the auditor’s judgment that the city’s financial records and statements are fairly and appropriately presented, and in accordance with Generally Accepted Accounting Principles.
A ‘qualified opinion’ is issued when the auditor discovers something in the financial statements that is subject to major concern.
Avila said the 128-page document would be made available to the public on the city’s website.
In other actions by the council, the city continued its agreement with the county and the Community Development and Block Grant partnership and also contracted with Special District Services for the administration of its three district bonds.
At the start of the meeting, Mayor Pat Paul acknowledged Fred Rich and presented certificates to the scores of volunteers that came out for the May 4 Love Oakdale event.
“We really appreciate the schools, service clubs, and faith based members of the community for coming out,” Rich said.
Mike Hancock also received recognition from Rich for his assistance of Love Oakdale.
“It was actually Mike Hancock (in-charge) assisted by Fred Rich,” Rich said of Hancock’s involvement.