News and Tribune

Floyd County

February 6, 2010

Police union wants second audit

Sewer board unlikely to change its position on Georgetown, TARC routes cut



The audit suggested by the New Albany police and fire unions is more thorough and comprehensive than the state’s annual survey of the city’s finances, FOP Lodge 99 President Paul Haub said Friday.

State Board of Accounts Supervisor Charles Pride warned last week that if the City Council funds another audit that studies the general and sewer funds, it could be asked to repay the expense as it would be deemed a duplication of services.

Councilmen Jack Messer and Dan Coffey brought the issue up again during a Feb. 1 meeting, each calling for the council to order another audit. The city is facing a 70 percent sewer rate increase and there have been budget shortfall issues in the public safety departments the past two years.

But the audit touted by the unions wouldn’t rely on receipts, invoices and other paperwork like the state board of accounts’ study, Haub said. He defined it as a forensic audit, similar to what police use to track money trails in criminal investigations. Instead of relying on documents, the auditor would physically check each city fund to determine if the money recorded is actually in those accounts.

The auditor would also check to see if work paid for out of taxpayer funds was actually performed.

Haub said the unions are willing to contribute to the cost of a forensic audit, and that he knows an associate tenured in the field who’s a retired criminal investigator.

The council doesn’t seem to have faith in the numbers being submitted by the administration and the unions have been sometimes skeptical too, Haub said.

A state board of accounts audit “is just dependent on the numbers that are down on paper and documented there”, Haub said.

“It’s really to go beyond and dig into what’s on paper and make sure that the money is actually there and get the council some solid numbers.”

If the police union ever filed for arbitration against the city, Haub said it would need the numbers anyway so it’s willing to contribute financially to the audit.

Haub said this audit would not be a duplication of services because it’s just not the same as what the state board of accounts administers. He added the state agency doesn’t have the power to force a council to do anything.

A work session over the proposed $1.5 million Economic Development Income Tax appropriation for the police and fire departments is slated for 5 p.m. Monday.

Haub plans on again mentioning the audit to the council.



Sewer board waiting on final Georgetown plan

With a 70 percent rate increase likely to be passed by the New Albany Sewer Board Thursday, the finances of the utility have been the focus of much attention.

Even before the rate hike was announced, the saga between the board and Georgetown over sewer service brought mixed emotions.

Under a deal with New Albany, Georgetown was to pay the city $450,000 if it remained on its system past Feb. 1 of 2009 — a contract that was extended and then reworked by the sewer board.

Georgetown officials claimed the penalty was only to be paid if the town was to be on New Albany’s system for several more years. New Albany council members, including Jeff Gahan and Pat McLaughlin, saw the issue differently and have stated the $450,000 should be collected.

Last year, the sewer board signed-off on a new plan that reduced the payment from Georgetown to $25,000. It was based on the assumption Georgetown would be able to have a wastewater treatment plant finished within two years.

Georgetown has received federal stimulus money for its plant, and significant progress has been made with officials hoping to break ground on the facility this spring.

Sewer attorney Greg Fifer doesn’t anticipate the board’s decision regarding Georgetown will change. He said the board will likely finish the contract with Georgetown after it provides a firm schedule on completing its plant.

“I think everybody is just waiting to see if the path Georgetown is on will be finalized and deal with it,” he said.



TARC cutting some New Albany routes

The New Albany express route No. 69X will be eliminated from TARC’s schedule Feb. 21, one of 22 routes either being reduced or ended by the company.

There are alternative service options for the New Albany express route. The other cutback impacting the city will be scaled back routes of the New Albany to Clarksville service.

The economy was blamed by TARC for the reductions. New schedules and route information will be available the week before the changes start and can be found at the Web site www.ridetarc.org.

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