BWC meeting of 9/30/09 Minutes.
Meeting called to order at 3 pm, Wednesday 9/30/09 by Co-chair Steve Gazzano.
Attendees: Steve Gazzano, Jean Schaefer, Dan Wexman, Paul Sieloff, Marilyn Crary, Mark Abraham (speaker phone).
Absent: Lori Vanderschmidt, Emily Beebe
Re: Discussion about 3 different account methods for new Water System. 1) General Fund, 2) Special Revenue Fund, 3) Enterprise Fund.
The 3 different accounting funds were discussed at length and how they might be applied to Wellfleet’s Municipal Water System (WMWS). Following are the resulting recommendations
1) Financial accounting for the current WMWS is the General Fund.
2) Wellfleet Board of Water Commissioners have the authority to establish a Special Revenue Fund without Town Meeting vote.
3) Establishment of an Enterprise Fund requires majority vote at Town Meeting.
4) Enterprise Fund is best choice for WMWS.
5) It was determined that the primary reason for the establishment of a Municipal Water System in 1986 was to provide water to properties whose wells had been contaminated by the Town dump and the primary reason for the 2004 expansion was to provide water to Municipal Buildings. Both these projects were Town responsibilities. Consequently, any associated debt incurred for these projects should remain in the General Fund. Any town financed hookup fees still being paid from prior expansions should continue to go into the General Fund.
6) Any debt incurred to develop the 2009 WMWS expansion should be included in the Enterprise Fund. Also included would be Fixed Assets, revenues from connection fees, water usage fees, costs of operation & maintenance
7) A Special Revenue Fund should be set up account for the development costs and expenditures that are currently occurring. This would assure a smooth transition to the Enterprise Fund on 7/1/2010.
7) In the first few years of operation, an operating loss is anticipated, thus requiring a subsidy from the General Fund.
8) Should do an analysis of water usage rates and consider meter readings 2 times per year, with higher seasonal rates to increase annual revenues.
9) Enterprise Fund would start with Fiscal Year 2011 (7/1/10 – 6/30/11).
Meeting ended at 5 pm
Prepared by Jean Schaefer, 10/8/09
The Water Commissioners approved these minutes at the meeting held 10/20/09.
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