SORRENTO — Problematic, repetitive and expensive sewer system repairs have reduced the town’s assets by 10 percent since 2009, according to an audit report presented to the Town Council.

In September, the Town Council agreed to hire accounting firm Faulk & Winkler LLC to conduct an extended audit after the state Office of Legislative Auditor said it required more information regarding Sorrento’s financial procedures for the fiscal year ending June 30, 2011.

Jacob D. Waguespack, of Faulk & Winkler LLC, told council members Tuesday the town spent $330,000 in 2010 for improvements to the sewer system and about $50,000 in 2011.

Those expenses helped decrease the town’s total assets from $2.9 million in 2009 to just under $2.6 million in 2011, Waguespack said.

“We’re going to have to make some decisions in the future to determine what we’re going to do to fix that,” Waguespack said of the need to make additional expensive repairs.

The town has experienced years of problems with its sewer lines and treatment center ponds, most recently with water and sewage flooding manholes and homes during heavy rains along Braud and Johnson streets.

But Councilman Randy Anny said the system has been repaired and new parts, including a new aerator, installed.

More money to cover the costs of past repairs can also be reclaimed from a nearby trailer park whose residents clogged up the system’s water lines and lift station with debris, and from a private company that accidentally bored two holes into water lines, officials said.

The audit reviewed personnel procedures and documentation for new hires and revealed personnel folders often were missing required documents such as employment applications, Social Security cards and eligibility determination forms, Waguespack said.

Other business coming before the council included:

HOMEOWNERS’ CLAIMS: Council members unanimously agreed the mayor could cover expenses of three homeowners who had sewage overflow into their homes due to past problems with the town’s sewage system.

Officials have not yet worked out final details with the town’s insurance company regarding the homeowners’ claims, but wanted to repair the floors in the homes before mold sets in and causes further damage or becomes a health hazard, officials said.