Tuesday, January 18, 2011
Thursday Meeting Will Address Utility System Financial Woes
A meeting has been scheduled for Thursday as City of Lawrenceburg and Lawrenceburg Utility System officials work to resolve financial woes that have recently come to light.
LUS Chief Financial Officer John Cain tendered his resignation recently after it was determined that he had been utilizing a means of keeping the city’s water and sewer systems in the black that is no longer allowed by law.
Officials reported that for approximately a two-year period Cain had been transferring around $60,000 per month from the city’s electric department fund to the water and sewer department in an effort to keep that fund out of the red. In total, officials say Cain transferred some $2.8 million without authorization.
Durham emphasized that no illegal actions were taken by Cain, and that no funds were unaccounted for. The monies are simply not where they were supposed to be.
State law requires that the monies transferred from the electric department fund be repaid within a five year period.
The meeting is slated for 12:00 p.m. on Thursday, January 20, 2010 in the meeting room of the Lawrenceburg Utility System on North Locust Avenue. During the meeting officials will discuss how to repay the funds in question and satisfy state requirements.
Officials indicate that Cain has since returned to work at LUS, however not in the same capacity.
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