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Saratoga County Water Authorities Final Report

Saratoga County Water Authorities Final Report

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Published by Dennis Yusko

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Published by: Dennis Yusko on Aug 30, 2012
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08/30/2012

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ES - 1
 
Operational Review Saratoga County Water Authorities
 August 27, 2012
OR-2011-02
● Accountability● Transparency
 
● Integrity
 
uthorities
B
udget
O
ffice 
 
 
Table of Contents
Topics Page Number
Executive Summary ESIntroduction and Background 1Compliance Review Objectives 4Compliance Review Scope and Methodology 4Review Results 5Consolidating Authorities 5Benefits to Consolidation 5Factors to be Considered 7Review of Management Practices 10Wilton Water and Sewer Authority 10Saratoga County Water Authority 10Clifton Park Water Authority 14Recommendations 17Wilton Water and Sewer Authority Comments 19Clifton Park Water Authority Comments 21Saratoga County Water Authority Comments 25 Authorities Budget Office Comments 32
 
ES - 1
Executive Summary
 
Purpose andAuthority:
The Authorities Budget Office (ABO) is authorized by Title 2 of the Public Authorities Law to review and analyze the operations,practices and reports of public authorities, to assess compliancewith various provisions of Public Authorities Law and other relevant State statutes, and to make recommendationsconcerning the reformation and structure of public authorities.This includes rendering conclusions and opinions regarding theperformance of public authorities and assisting these authoritiesimprove management practices and the procedures by whichtheir activities and financial practices are disclosed to the public.Our operational review of the three public water authorities inSaratoga County was performed between November of 2011and June 2012 and was conducted in accordance with our statutory authority and compliance review protocols which arebased on generally accepted professional standards. Thepurpose of our review was to determine if the three authoritiescould be consolidated and to evaluate the management andoperating practices of the authorities.
BackgroundInformation:
 
There are three separate public authorities that operate water systems in Saratoga County: Saratoga County Water Authority(SCWA), Clifton Park Water Authority (CPWA) and the WiltonWater and Sewer Authority (WWSA). All three were establishedin the early 1990s, although SCWA was essentially dormantuntil 2007, when it took over responsibility for the water systeminitiated by the County in order primarily to meet the needs of GlobalFoundries, a computer chip manufacturing company.CPWA and WWSA obtain most of their water from wells, buthave been connected to and have received some of their water from SCWA since 2010.SCWA began providing water in February 2010, and provided just over one billion gallons of water to its customers in 2011.For 2011, SCWA had $2.8 million in water revenues andoperating costs of $4.8 million, with 9 full-time staff. Currently,no SCWA employees are primarily responsible for financialmanagement. SCWA contracts with an accounting firm to assistits confidential secretary with bookkeeping on an as-neededbasis.
SCWA’s costs
of operations per thousand gallons of water produced were $4.58.

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