The City of Fredericktown has received a report from the financial consultant Gregory L. Shinn, CPA. Portions of the report address some of the city’s accounting operations and included a cash-flow statement for the electric utility department for the nine month period ending June 30, 2008.

According to the cash flow statement, Fredericktown’s electric utility fund showed a profit of $317,220.

Ward II Alderman Rick Polete said he has not heard any talk of raising electric utility rates among the aldermen. Not now or in the very near future. Polete also said  although he can’t see any immediate increases, the market is very unpredictable.

The City is undertaking the budget process and hopes to have a budget plan completed by the end of September.

The Ad-hoc Electric Committee was recommending an increase at the special meeting held August 14, but its figures were based on a spike in rates over a three-month period between April-June 2008. When the entire nine-month period is averaged out, the electric fund showed the profit. The aldermen did not act on the recommendation because they did not have the cash flow statement at the time of the August 14 meeting and were not sure just exactly what the bottom line was for the nine-month period regarding the electric utility.

Mayor Danny Kemp agreed with Polete’s comments, the information provided by the ad-hoc committee did not cover the entire period and those figures presented to the aldermen were not as accurate as they could have been. The Ad-Hoc Electric Committee has since been disbanded.