The North Overton Utility District recently received a positive audit, highlighting a much-improved financial condition for the 2024-2025 fiscal year.
According to the audit, the district reported total assets of an estimated $6,520,826 at the end of the fiscal year, exceeding liabilities by an estimated $5,970,736. Total assets increased by an estimated $850,937 from the previous year, while total net position rose by an estimated $840,076, a 16.37% increase. Field Manager Kenny Hall said the improvement reflects the district’s daily efforts to maintain its water system and operations.
“Oh, well, it’s policies and processes, trying to keep our leaks fixed as quickly as we can find them and get them fixed, and just doing what we have to do day to day,” Hall said.
The audit also noted that the district maintained good debt service coverage and that its operating plans and staff capabilities are well balanced and under control. Hall said the utility district is proud to see improvement and be in a good financial situation.
“We are glad to see them, of course,” Hall said. “We always want to see a good statement on our audit.”
The audit also showed accounts receivable decreased by 2.82% from the previous year, with most accounts current within 30 days. The district typically does not receive financial assistance from the state or Overton County, meaning most project costs fall on customers.
However, the district did receive $615,624.23 in American Rescue Plan funds through Overton County, along with $205,208.07 in county matching funds, which were used for the Stover Road line extension project.
“It gave us another way to feed the system in that area,” Hall said. “Before, we only had one line, so if something went down, it could interrupt service. Now we have two lines, so we can shut one off for repairs while keeping water flowing. That grant was a huge help and really demonstrates the importance of looking for funding opportunities to keep our system strong.”
Looking ahead, Hall said the district hopes to continue improving its financial position while keeping customer rates low.
“The better we do financially, the lower we can keep our rates for our customers,” Hall said. “I’m at the point where I’m thinking about retirement, and I want to make sure the people in our community aren’t paying more than they have to for water. That’s always been one of our biggest goals.”