BRUNSWICK SEWER DISTRICT

 

Board of Trustees Special Meeting & Annual Budget Meeting

Approved Minutes

30 November 2009

 

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Call to Order

           The annual budget meeting of the Board of Trustees of the Brunswick Sewer District was called to order by Chair Priest at 6:38 p.m. on Monday, 30 November 2009, in the conference room at District offices. Notice of the meeting was advertised in the 25 November and 27 November 2009 editions of the Times Record. A prepared agenda was provided and the meeting was recorded.

            Members present: Chair Priest, Trustees Boochever, Green, Barbour (6:55-9:12 p.m.), and Schwindt.

            Others present: :  General Manager McVey, Assistant General Manager Blanchette, Finance Manager Nuttelman; camera operator Hedy Blauvelt.

Introduction of Parties Present

            There were no members of the public in attendance.           

Review Budget Approval Process

             The General Manager reviewed for the Trustees the process by which the annual operations budget is drafted, reviewed, and approved. A description of the process is included in the budget document.

2010 Operations Budget

            The Trustees considered the 2010 operations budget proposal dated 30 November 2009. The document includes a summary analysis of budget funds and expenditures as well as projections of operating and non-operating revenues, division and annual operations maintenance and general expenses, capital and construction, and bond principal and interest, for year-end 2009 and for 2010. Budgeted amounts have been developed based on data from prior years, current year to date, and planned activities in 2010.
            The budget proposal anticipates no change in flow for 2010 for residential, commercial, Topsham, drainage, and septage. Projection of Navy-related flows foresees a reduction during the budget year as preparations for Base closure in 2011 continue. User rates are projected to remain unchanged throughout the budget period. Overall, the budget currently anticipates a $200,000 deficit, which will be offset in the final proposal by appropriation of capital and depreciation reserves. The operating ratio for the proposed budget is acceptable. The debt service coverage ratio is unfavorable in a year during which the 20-year secondary upgrade bonds will be retired; this ratio is projected to improve to excellent in 2011 due to a reduction in outstanding debt
            As in 2009, expense accounts have been budgeted in amounts that will require active monitoring by management to control budget utilization. Staffing in 2010 will be maintained at currently authorized levels. The budget includes an allowance for overtime and merit increases. Larger capital items include replacement of the jet–vacuum truck and a comprehensive upgrade of the Treatment Operations Division heating system. No construction to upgrade or expand sewers is planned. Bond payments in 2009 total $866,000 in principal and $59,000 in interest.

Board Discussion

            The Trustees discussed major expense accounts and capital budget items, including labor, benefits, electric power, heating fuel, safety equipment, sludge utilization, meter reading expense, and professional fees. The Trustees also discussed depreciation and the degree to which it is funded, as well as plans to request acceptance of donated assets in 2010. Particular attention was given to projection of Navy-related flows.
            Trustee Schwindt suggested that the District may wish to consider issuing new debt to underwrite the cost of the jet-vacuum truck replacement and conversion of the treatment plant heating system. Trustee Barbour requested that District staff investigate lease-purchase of the jet-vacuum truck. The Finance Manager noted that a number of items are still being reviewed and may change; these include salaries and wages, heating oil, professional fees, travel expenses, planning for replacement of computer equipment, and earned interest.

Public Comment

             There were no members of the public in attendance. No oral or written comment regarding the budget or its development has been received.

             Chair Priest declared the meeting in recess from 8:12 p.m. to 8:27 p.m.

Executive Session

At the request of the General Manager,

            IT WAS MOVED BY TRUSTEE BARBOUR, SECONDED BY TRUSTEE GREEN, AND UNANIMOUSLY VOTED BY THE BOARD OF TRUSTEES TO ENTER EXECUTIVE SESSION AT 8:28 P.M. TO DISCUSS A PERSONNEL MATTER UNDER M.R.S.A. TITLE 1, CHAPTER 13.1.405.6.A.

            The meeting returned from executive session at 9:10 p.m., after discussion of a personnel matter under M.R.S.A. Title 1, Chapter 13.1.405.6.A. No action was taken during the executive session.

            IT WAS MOVED BY TRUSTEE GREEN, SECONDED BY TRUSTEE SCHWINDT, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO RETAIN THE SERVICES OF D. GALLANT MANAGEMENT ASSOCIATES TO ASSIST IN SUCCESSION PLANNING.

            The General Manager was directed to notify interested parties of the Board action and to request of D. Gallant Management Associates that a contract be prepared

Schedule of Upcoming Meetings, Events, etc.

  Trustees Regular Monday 14 December 2009 6:30 p.m.    
  Trustees Regular Monday 14 January 2010 6:30 p.m    
  Trustees Regular Thursday 16 February 2010 6:30 p.m.    

Remarks from the Chair:

            Chair Priest thanked the Trustees for their assistance.

Adjournment

            There being no further business before the Board,

            IT WAS MOVED BY TRUSTEE BARBOUR, SECONDED BY TRUSTEE BOOCHEVER, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO ADJOURN THE MEETING AT 9:12 P.M.

 

 

Attest,

         Peter F. Schwindt
         Trustee Clerk, Board of Trustees
 

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