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Conservancy District hot topic

 
BY RICK HAYES
STAFF WRITER
Posted on 1/26/2016, 4:45 PM

BENTON — Former Rend Lake Conservancy District Board member Jere Shaw of Mt. Vernon implored the Benton City Council to get involved in the controversy surrounding the District allegedly using water funds to subsidize recreation.
Conservancy District board member Todd Thomas of Franklin County said though the District has not started that practice nor does it plan to in the future.
"We fought hard to keep water, sewer and recreation separate because the Auditor General said we should. For several years we were able to do that. More recently, the Board started nibbling away, using water funds to support recreation. We didn't think that was right," Shaw said.
Shaw said a formula was established to pay for central office operations, with 70 percent coming from water receipts, 20 percent from recreation and 10 percent from sewer.
In October, the Board made a "wholesale move" to combine all funds, according to Shaw.
"That means in the future that water is going to be paying for a lot of recreation costs and I don't think that should happen."
Shaw said the RLCD has gross receipts of approximately $9 million annually and it costs about $6 million to produce that water to area municipalities.
"We've got $3 million in net receipts this year. There's a tendency to  use that money to pay for recreation but I think there's better uses for that money. Number one, you could reduce water rates or number two, the money could be set aside so the district can work on infrastructure."
Shaw said the district allegedly used $250,000 from the water fund for new golf carts, promising to return the money to the fund.
"Now there's no need to pay it back because it's all going to be in one fund," Shaw maintained.
Board member Jim Rippy of Mt. Vernon, who confessed he is a regular golfer, said the conservancy district has made a lot of progress in the 10 years he has been a board member.
"My focus is simple: I'm a golfer and I don't believe the 460,000 customers that are depending on water, which is a necessity, want to pay for me to play golf," he said. "This is an issue that is not in the best interests of the water customers in the District."
Thomas responded, "We are not taking water from and using it in recreation, haven't and not going to. The only thing that's changed is we're using the money to take care of more of the administrative costs in that main office."
Thomas said the conservancy district has won lawsuits "over these guys" and has been audited multiple times.
"Everything we're doing is legal, not only legal, it's ethical. Every move we've made is legal and ethical."
Thomas said over the next five years, the District is expected to spend $19 million on the water plant. Thomas said the notion the District uses water funds to support recreation is "completely false."
He added, "It's getting so frustrating constantly having to defend myself and the conservancy district. Our finances are wide open. Any question you have, you can get the answer to."
Thomas added the money to pay for the golf carts will be paid back to the water fund, rather than obtaining a loan and paying interest on the indebtedness.
"It's totally legal and within our rights to do that," Thomas said.
Thomas added he is on the Board to be Franklin County's voice.
"If there's anything I can do to help in going in the direction you would like me to go in, I would love to do it."
Jefferson County Board recently passed a resolution in support of a voter advisory referendum on the issue. Franklin County Board Chairman Randall Crocker declined to get the issue on the ballot in time for the March primary, and from all indications, is not interested in advancing the resolution in future meetings.
 

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