NORRIDGEWOCK — An auditor for the town reiterated to the sewer commissioners Thursday night that they are thousands of dollars in debt to the town and suggested either a rate increase or consolidating the sewer department with regular town operations as possible solutions.

“The sewer department has no funds,” said Rob Smith, an auditor and CPA for Smith and Associates, an accounting firm. “The town has actually been subsidizing the sewer department.”

The commissioners invited Smith to their regular meeting Thursday to discuss the department’s financials, which have been an item of concern for the last several months. Town Manager Michelle Flewelling has also raised the issue with the commissioners at several meetings, adding that the town’s wastewater treatment plant is in need of upgrades and general maintenance and the town could be fined if the plant is found in violation of Department of Environmental Protection rules.

The amount of money the department owes the town has varied in recent months, but on average has been between $60,000 and $100,000 over the last year, Smith said Thursday.

Vice Chairman of the Commissioners Ron Currier said he was concerned that the commissioners have been given inaccurate numbers by the town manager and passed out a paper that raised questions about the accuracy of the sewer financials.

The paper alleged that the sewer commissioners have not been given copies of the annual auditors’ reports, although Town Manager Michelle Flewelling said the audits are in the town office for anyone to see. “It’s not a big secret,” she said.

“I’d really like to know what numbers we’re working with when we make a budget,” said Currier, who asked that Smith conduct an audit of sewer funds separate from the regular town accounts. “I’m looking for a quality, thorough audit of the funds that come through the sewer department,” he said.

“If there are any ghost numbers out there, I expect your firm to be able to find them and explain where they are going and coming from,” Currier said.

Smith said that while the commissioners should be concerned about the amount of money the department has recently relied on coming from the town to fund operations, the sewer department is in better shape financially than it was three years ago before the most recent sewer rate increase.

Still, he said the department needs about $300,000 to pay back the money owed to the town and to properly fund their reserve accounts. “I can’t say it’s all gloom and doom, because you have worked hard and there’s a lot of good work that’s been done,” Smith said. “But based on that I would say it’s time for another round of adjustments.”

The commissioners decided Thursday night to table plans to hire an engineering firm to come up with a long-term plan for repairs at the wastewater treatment plant. They plan to discuss the financial situation of the department with the Board of Selectmen, including the possibility of using tipping fees from the town transfer station to help offset the debt of the sewer department.

Rachel Ohm — 612-2368

rohm@centralmaine.com

Twitter: @rachel_ohm