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Shelby residents and officials press for review of water district accounting and a longstanding $25 fee
Summary
Public commenters and board members urged a detailed audit of Shelby's water districts after discovering unclear accounting for non‑metered charges, a $25 maintenance fee whose destination is unclear, payroll coding that misallocates labor, and potential need for rural water consultants.
A substantial portion of Shelby's public budget comment session focused on water district finances, where speakers described unclear revenue allocations, labor misallocation and an apparently longstanding $25 operating/maintenance fee whose proceeds lack a clear reserve account.
Residents explained that some properties without meters are charged non‑metered sales fees and that a $25 charge has been billed for years. "That $25 that you've been after for years is a real puzzle," a town official said, describing uncertainty about where that revenue has been going and noting that a reserve account created by an older resolution did not specify a dollar amount and was not consistently used.
Speakers also described payroll and time accounting problems: a change in payroll systems removed district assignments for employee hours, producing apparent misallocations of labor among water districts. One commenter said payslips showed hours attributed to water district three for an employee who said he never worked there; the town official acknowledged that labor coding must be fixed and pledged to develop a monthly overtime and labor spreadsheet for oversight.
Participants raised operating questions about blended rates, whether districts can legally adopt a single, combined rate, and whether bond payments were appropriately recorded as debt service or operating charges. The town official said there is insufficient data to implement a consulting‑level fee study now and that at least one year of consistent, corrected data will be needed before considering blended rates or fee restructuring.
Multiple speakers urged hiring a rural water consultant to sort accounting, budget and billing policy, and asked for clearer monthly reporting so the board and public can track water revenues and expenses. The official said staff are beginning work with a single point of contact (Margaret) and hope to produce clearer allocations as the accounting is reconciled.
The meeting produced no decisions; speakers said next steps include further data collection, possible consultant procurement and clearer monthly reporting to the board.
