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Water treatment plant's debt continues to grow

Salyersville city officials say the water treatment plant's debt is still growing.

In September, officials say it was $165,000 in the red.

The city and county are paying off the debt, but must figure out how to get it back in the black.

Salyersville Mayor Pete Shepherd has a stack of bills for the water treatment plant.

“It's not good, like I said, we got find out what's going on and just what the problem is and we'll sit down and we'll fix it,” Mayor Shepherd said.

Two months ago the plant owed $165,000 in overdue bills and officials say the debt increases each month.

In September, AEP threatened to turn off electricity to the plant unless their $87,000 overdue bill was paid.

The Magoffin County Fiscal Court loaned the city $25,000 in September and October.

Now that it's November, the city must find a way to pay the rest of it.

“We're just going to think positive,” Mayor Shepherd said.

City officials do want to pass the debt onto the customers.

“I don't think it's the customers' fault we're in this position. Until we find out exactly where we are, hopefully nothing will be passed on to the customer at this time,” Mayor Shepherd said.

AEP has offered a payment plan for the city to pay ten thousand dollars for five months.

City Council also got an accountant to manage the water treatment plant's books.

“We’ll oversee daily monies coming in, monies going out, that way, there will be no discrepancy on what's actually being put in the bank, what's being spent and make sure it's being spent on what it should be,” City Councilman Jeff Ross said.

They hope to get the finances back in the black next year.

City council is also paying for State Auditor Crit Luallen to audit the water treatment plants books to figure out how it got so far into debt.


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