The Brattleboro Selectboard came out of an executive session to hold special meeting about three of the Town’s fund budgets. The FY17 Utility, Parking, and Solid Waste budgets were up for review, along with updated plans for capital improvements within each enterprise fund.
Before the funds fun could get underway, Chair David Gartenstein congratulated and thanked a third grade class at Academy School for their study of West Brattleboro and how well town services meet the needs of the students. He said they wrote letters with their recommendations. Top of their list, he said, was concern about sidewalks and how close traffic is to edges of the road in some places. In addition to the safety concerns, they hoped for more clothing stores and restaurants.
By way of overview, Town Manager Peter Elwell explained that capital improvement plans are in the process of becoming proper 5-year plans for upgrading and replacing equipment within each enterprise fund. He said the long term planning work will be done before the year is out, and until then the capital plans should be considered solid for the coming 2-3 years only.
The FY17 fund budgets for Utilities, Parking, and Solid Waste will be approved at the next regular meeting of the Selectboard. This meeting focused on details and preliminary questions.
Utilities Fund
The Utilities Fund is the largest of the enterprise funds, and includes all the revenue and expenses for the town water and sewer systems.
Town Manager Peter Elwell explained that the biggest savings in the utilities budget for FY17 is in fuel costs. Last year’s quite good price of $1.97 per gallon is even lower for FY17, at $1.579 per gallon for heating oil.
Lower fuel costs will save over $30,000, but the Utilities budget is increasing slightly, by 1.5%.
Dick DeGray asked if the income from sewage disposal matched up with what was budgeted, and Finance Director John O’Connor said they would exceed what was in the budget.
DeGray asked about new accounting covering administrative overhead costs. Specifically he wanted to know why the line items from earlier years didn’t add up to what the newer combined assessment was showing.
Elwell said that there had been somewhat arbitrary assessments in the past, and a comprehensive review a few years ago looked at the actual costs of providing the adminsitrative overhead to each of the enterprise funds. The numbers shown in the FY17 budgets were those more accurate numbers, and those were the amounts that would be transferred to the General fund.
Capital projects for FY17 include the reservoir at Chestnut Hill, and the new million gallon water tank for Black Mountain Road near World Learning. Planning for repairs at Pleasant Valley Water Treatment Plant are in the plan, as well as continued investment to maintain the Whetstone Interceptor.
The Interceptor sounds like a roller coaster, but it is a drainage system in the Whetstone, intercepting sewage from entering the brook. A replacement would cost $25-30 million, said Elwell, so maintaining it for $30,000 a year seemed wise.
Other Utility Fund capital expenses include a truck, a portable hydraulic unit, and an impact hammer.
The board began a discussion of water and sewer rates. DeGray felt that with the surplus growing faster than anticipated, the board might want to consider freezing the rates for a couple of years.
Elwell cautioned that the board shouldn’t tinker with water and sewer rates, at least until the long term capital planning is complete. He noted that the board could still adopt changes for FY18. “It will still be timely for highest years of debt service on the Police-Fire project.”
Department of Public Works Director Steve Barrett said that any small change in percentages could dramatically impact the deficit down the road. He asked the board to be careful, as the model was working pretty well.
The Utilities budget will be on the board’s next agenda for approval.
Parking Fund
The Parking Fund FY17 budget shows expenses and revenues down over the previous year., with the largest savings coming in the form of a reduction in bond interest for the Transportation Center. The bond bank found a way to refinance and save the town significant funds.
There are issues at the parking garage and repaving in Harmony Lot to be dealt with in the FY17 capital plan for the parking system. The Harmony Lot work will address current problems but not be a complete reworking of the lot. More info will come as the project approaches.
Much repair is needed at the parking garage. “For a 10 year old structure, it is troubling to see high priority repairs so soon,” said Gartenstein. He requested a full report on any and all issues there.
DeGray asked why a transfer of money to the General Fund from the Parking Fund to cover administrative overhead didn’t charge more for rent for the space used by the Parking Enforcement Office at the Transportation Center. Elwell promised to account for the charges by their next meeting.
The issue wasn’t settled, though, and brought up additional questions and observations.
David Gartenstein wondered why the Parking Fund would pay the General Fund anything for rent, since it was their office and used for parking enforcement. “Shouldn’t it all be in the Parking Fund?”
Franz Reichsman asked who owned the Transportation Center, the Parking Fund or the Town as a whole? Gartenstein observed that the three funds were all part of the Town, and Elwell said they were treated differently than the General Fund because by law they must be able to stand on their own.
DeGray wondered if rent wasn’t required at all due to these being enterprise funds. Elwell said taxpayers were responsible for the bond. Reichsman wondered why Representative Town Meeting didn’t have a say in these three budgets.
The board decided to vote on the Parking Fund operating budget at their next meeting, but will likely wait to approve the capital Improvements until more information is available.
Solid Waste Disposal Fund
The easiest fund to explain was the Solid Waste Disposal Fund, an new enterprise fund set up by the Selectboard concurrent with implementing Pay As You Throw.
Elwell reported that overall the fund is down 12% over the prior year’s estimates. A more accurate count of bags being sold, a reduction in costs related to trash collection every other week, and an expected reduction in fees to the Solid Waste District accounted for most of the savings.
The board is still waiting for a report on expected changes at the Solid Waste District, due in June. “This is the best we have at the moment,” said Gartenstein. “It could turn on a dime any day.”
