Dunkirk Department of Public Works Director Randy Woodbury stands next to the pumps at the city’s water pumping station on Main Street Extension. The system produces 3 million gallons of water daily and feeds a portion to the North County Water District. P-J file photo

Trouble began brewing in early May 2022 when both the town of Portland and village of Brocton gathered to discuss ongoing billing problems regarding the North County Water District. That meeting was the first time anything publicly was discussed about the middle man in the process: Chadwick Bay Intermunicipal Water Works.

To listen to those town and village officials in attendance, frustrations were reaching a boiling point. Some $1.4 million was owed by the Chadwick Bay billing agency to the district. Chautauqua County officials, specifically those tied to the Finance Committee, were expected to get involved in the dispute.

“The way I look at it now, the best thing is that the county is finally opening its eyes,” said Brocton resident and water district advocate Dave Hazelton in 2022. “The county’s finance committee can ask for an audit, and I think that may be the best thing.”

One thing is certain. An audit did take place and it was none too complimentary.

Only days before this past Christmas, state Comptroller Thomas DiNapoli issued his findings regarding the wrongs that had been taking place for far too long. Not only were elected officials in Portland and Brocton unaware of the problems, the lack of financial accountability has rarely been discussed by county legislators — or anyone on the Finance Committee.

This is exactly what happens when government starts creating additional agencies that answer to a chosen few, but not the users or residents it serves. New York State’s Thruway is a perfect example of this. Two years after laying off numerous toll takers, the authority put forth additional hikes for motorists — exorbitant ones for those who fail to use the E-Z Pass model.

What’s happening with the water district, its users — and non-users — is just as appalling. DiNapoli’s report noted the lack of monitoring for the agency’s financial operations led to a growing negative cash balance totaling more than $5 million as of Dec. 31, 2022. In addition, DiNapoli said the district was experiencing, on average, $150,000 operating deficits each year, and owed its general fund $5.2 million, plus related interest.

“The district board, County Legislature and other county officials did not adopt realistic budgets, routinely monitor the district’s financial operations or take appropriate actions to maintain the district’s fiscal stability,” the report notes. “As such, all county taxpayers have been indirectly funding district operations instead of just the real property owners who benefited from the district’s services.”

Our newspapers have been one of the biggest advocates for the regional delivery of water for decades, but these figures are not something that can be dismissed. Just as maddening is the lack of financial information during the district’s monthly meetings.

Hazelton, who has been almost as dedicated over the last decade as anyone to overseeing the North County Water District, does not even receive monthly financial statements as a board member. Whose brilliant idea was that to withhold important information from key stakeholders?

Timing for the audit’s release could not be worse. Those who follow the perpetual Fredonia water follies are well aware of the tug-of-war that is currently playing out in the village.

Last week, a lawsuit was filed to halt a Dec. 26 decision to draw down the reservoir while purchasing the commodity from Dunkirk. It is one more delay to progress for the antiquated and unreliable system.

Those in a divided municipality who prefer the status quo have rightly bull’s-eyed the lack of fiscal oversight with the district. Sloppy decisions done without transparency in the past make even previously ineffective trustees seem at the top of their game.

At the Jan. 22 Village Board meeting, former elected official James Lynden referenced DiNapoli’s findings. He said the county and district did not have an analysis and plan “to pay back those funds” and still do not.

To be fair, Fredonia’s system also is in the red. In its current budget, there’s a projected loss of more than $500,000 for its water fund.

As for Chadwick Bay Water Works, its work is done in the dark as an arm of the district. Though board members meet consistently on the second Thursday of the month, it is obvious the body could be more transparent on these issues as well.

Chautauqua County, which has a $37 million surplus, was whining about a reduction of $4 million in Medicaid funding through the state in the spring and summer. On the flip side, the Legislature and Finance Committee went silent in regard to more than $5 million in taxpayer funds that were lost over more than seven years while heavily subsidizing district losses.

These are the officials who may be approving themselves a 60% pay hike — according to the recent Salary Commission effort. That recommendation obviously did not take into account the group’s fiscal watchdog abilities.

One more bit of disappointment in the recent developments caused by this audit is this makes regional efforts even more difficult in the future. It creates an easy excuse for those, like Fredonia and many other municipalities, who disdain partnerships.

John D’Agostino is the editor of The Post-Journal, OBSERVER and Times Observer in Warren, Pa. Send comments to jdagostino@observertoday.com or call 716-487-1111, ext. 253.