May 13, 2009
Chairperson Richard Fournier called a work session meeting of the Board of Water Commissioners to order at 12:10 pm. Commissioners present were Lucien Langlois, Stephen Tardiff, and ex-officio member Mayor Bertrand. Absent from this meeting was Commissioner Paul Poulin. Also present for this meeting was Superintendent Viens and Lynne C. Lessard.
The purpose of this meeting was to review the FY2010 Budget.
It was moved by Commissioner Langlois, seconded by Mayor Bertrand, with all in favor, to authorize the Superintendent to purchase the Rammax Trench Roller from Proquip, Inc. in the amount of $18,826.00. This purchase will be from our current budget.
Superintendent Viens handed out a “BWW Budget History” graph, which indicates Operating costs have been the same for several years at $3.1 million. He also reviewed the “cover page” of the Budget’s highlights:
1. No permanent head count reductions as in past years (to offset wage/benefit increases).
2. Force Account Work will increase in FY10 w/stimulus funding
3. Long term debt payment – decreasing slightly annually ($50k)
Superintendent Viens then reviewed the Draft Summary Sheet and detailed line items for each of the schedules for the FY10 Budget.
1. Labor: This line item has a built in salary/hourly wage increase. Superintendent Viens also discussed the possibility of hiring additional temporary help for potential staffing for stimulus funding.
2. Fringe: Health Insurance has increased 6.8%. Fringe Benefits are dictated by labor numbers. Note: Primex used a 7 year modifier for Unemployment Compensation for FY09. FY10 to be determined.
3. Utilities: Fuel prices higher – If we increase our construction activity we will need to raise this Budget for Stimulus Force Account.
4. Materials & Equipment: Operational costs are similar to past years and may need to increase some line items due to stimulus funding.
5. Insurance: Numbers provided by Primex Insurance Company. Note: Worker’s Compensation modifier is based upon three (3) years of complete/closed claims. If claims are still open, then Primex goes back 4-5 years.
6. Minor purchases: We have lowered the Equipment/Garage Replacement line item. We are not accruing additional funding for the new garage. We started the process of upgrading our facilities, (lower garage & M&M garage). We will be doing upgrades to 55 Willow the office building for handicap access (ramps & bathroom) if we get RUS funds.
7. Forecast for FY10: Operations Budget is $1,657,271.
8. Debt Schedule: This is the actual payment schedule. It was noted that the 1993, 1994 & 1995 are “non-callable” non taxable municipal bonds meaning that we cannot refinance nor pay off early.
9. Actual for FY10: Debt Budget is $1,442,756.
10. Total FY10 Proposed Budget is $3,100,027. (Basically the same number as last year – we are forecasting about the same).
11. Billed & Earned Revenue Schedule: Force Account line is the size of our problem. $829,727 is needed to balance the budget. This is the biggest deficit to date. We make this up thru force account work thru funding. If we did not have force account work, we would have to raise our customer rates. The State Prison is using additional water and will be a budget beater. Our regular accounts continue to shrink. The Federal Prison will be turning water on in June. By next year, this time, they should be full time users.
Superintendent Viens will make a “highlight sheet” to be handed out at the Public Hearing to be held at City Hall on May 28, 2009 at 6:00pm.
Superintendent Viens informed the Board that he has received via e-mail from Gregg MacPherson of Rural Development that the loan will be for three (3) years construction duration originally it would have been for five (5) years for spending to 12/30/14. Gregg wants to cut 2 years so that the ending date would be 12/30/12. Our plan was to spend heavily on the State Revolving Loan (SRL) then spend down the RUS Grant. Superintendent Viens will be in contact with Gregg about this.
There being no further business to come before the Board at this time, it was moved by Commissioner Langlois, seconded by Mayor Bertrand, with all in favor to adjourn this meeting.
The meeting did so adjourn at 1:05 PM.
A True Record: ATTEST:____________________¬¬¬__________
Lucien Langlois, Acting Clerk of the Board
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