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Public commenter urges change to wastewater billing; city hears Board of Public Works and audit reports
Summary
A resident urged the council to revert to winter‑average water use for wastewater bills to avoid charging outdoor irrigation; the council heard the Board of Public Works annual report and a first‑year GAAP financial statement audit with an unmodified opinion from KPM CPAs.
A Lebanon resident told the council the city's wastewater billing method, which bills sewer on all water use rather than a winter average, shifts costs to residents who irrigate and could be depriving locals of purchasing power. The council also received an annual report from the Board of Public Works and the city's first GAAP‑basis financial statement audit, which yielded an unmodified opinion.
Public comment on wastewater billing Lehi Castellas, who signed up to speak during public comment, told the council the current billing method based sewer charges on total water usage and said that change — adopted after an ordinance in 2019 established irrigation meters — has increased sewer revenue by about $1,000,000 annually compared with prior practice. Castellas recommended reverting to a winter‑average (January through March) method or using the highest of those three months as a billing baseline so outdoor watering is not treated as sewer flow. “This method will avoid charging a hidden tax and treat all your constituents the same,” Castellas said.
Castellas said the data he used came from city budgets and revenue reports. Council members and staff confirmed the city changed methodology after a rate study in 2019 and that the city is currently reviewing utility rates for all three utilities.
Board of Public Works update City staff presented the Board of Public Works annual report. The board, chaired by Leanne Mather with members Jeremy Goforth, Ted Dahl and Don Anderson, held 14 meetings in 2024 and approved 27 resolutions including engineering task orders, materials and equipment purchases, mutual aid agreements and a home energy audit service for MOCA. The board also reviewed and approved the budget and capital improvement plan for submission to the council for final action.
Audit presentation: first GAAP financial statements and unmodified opinion Matt Wallace, partner with KPM CPAs of Springfield, presented the city's fiscal year 2024 financial statement audit — the city's first prepared on generally accepted accounting principles (GAAP) rather than modified cash basis. Wallace told the council the auditors issued an unmodified opinion, indicating the financial statements are presented fairly under GAAP.
Key audit highlights Wallace cited include: - General Fund total revenues of about $8.5 million and expenditures of about $8.6 million (net change in fund balance a $204,000 decrease), with a strong operating reserve (~60% by the metrics the auditor used). - Total governmental funds revenues about $20.9 million and total expenditures about $19.5 million; total governmental fund balance approximately $18.2 million. - Enterprise funds operating revenues near $33 million and net income of about $1.1 million; total net position across enterprise funds roughly $60.5 million. - A restatement note reflecting the conversion from a modified cash presentation to GAAP (accounts receivable/payable adjustments totalling about $782,000 at the conversion point) and that future statements will be GAAP‑based going forward.
Wallace also reported no findings with respect to internal control over financial reporting or compliance, and an examination of the city's ARPA (SLFRF) expenditures resulted in no findings. The auditor provided standard recommendations regarding cybersecurity vigilance and upcoming GASB accounting changes that may marginally affect liabilities for compensated leave.
Why it matters: The public comment connects billing policy to household costs and purchasing power; staff said they will continue a rate and cost of service study and are reviewing all three utilities. The audit presentation signals the city's financial statements meet GAAP standards and showed a healthy general fund reserve, while the Board of Public Works report outlined the board's recent activity and role in advancing capital work.
Speakers The article quotes Lehi Castellas (public commenter), members of the Board of Public Works identified in the report (Leanne Mather, Jeremy Goforth, Ted Dahl, Don Anderson) and audit presenter Matt Wallace (KPM CPAs).
