Standard-Examiner (UT)

By: Antone Clark, Standard-Examiner Correspondent

Last updated

Saturday, July 24, 2010 - 9:55pm

BOUNTIFUL -- An audit of South Davis Sewer District finances for the 2009 fiscal year paints a positive picture for local ratepayers in the near future.

The audit by Karren, Hendrix, Stagg, Allen and Company shows the district has more assets than liabilities and is poised to deal with potential financial challenges. The district currently has no bonds or outstanding debts and is in a position to maintain some of the lowest sewer rates in the state.

Based on a national survey by the National Association of Clean Water Agencies, the district's rates are in the bottom 3 percent of rates nationally.

The audit suggests no rate or tax increases are anticipated any time in the near future.

Arnell Heaps, vice chair of the sewer district board, recently told the Bountiful City Council the district continues to do a good job of delivering services, at a low cost.

Other audit findings include:

- A slowdown in the economy led to a significant decrease in the amount of impact fees collected for the fiscal year which runs Jan. 1 to Dec. 31. The district collected more than $1.1 million in impact fees in 2008, but only $605,482 in 2009.

- The number of people defaulting on sewer bills increased substantially. Delinquent accounts increased 31.7 percent from 2008 to 2009 and represent 8.2 percent of sewer fee revenues. The accounts are turned over to Davis County and attached to a customer's property taxes and collected when property taxes are paid.

- Interest income for the district was down almost 60 percent in 2009 from cash, cash equivalents and investments.

The sewer district serves the cities of North Salt Lake, Woods Cross, Bountiful, West Bountiful and Centerville. The district currently has two plants and has a network of approximately 3 million linear feet of sewer line throughout south Davis County.