Milford Council Looks at Sewer Fund in the Red
July 28, 2016 at 4:25 p.m.
By Jordan Fouts-
Utilities Manager Randy Veach requested the purchase of two replacement pumps for $6,122, which he characterized as a need, rather than a want, and which council approved. But trying to figure out which fund to take the money from led to questions on why the wastewater department spends more money than it takes in.
The sewer fund takes in about $32,000 a month but spends $33,000, much of it to pay down the bond that funded construction of the wastewater treatment plant, Clerk-Treasurer Joellen Free observed. She said the fund started the year with $17,000 but is now $11,000 in the hole.
“It will never be out of the red?” councilman Bob Cockburn asked.
Free shook her head no.
“Not till the bond’s paid off,” said town attorney Jay Rigdon.
“It’s scary when I look down there,” Cockburn later remarked, indicating a printout of the sewer fund balance. “I expected to see plus figures in wastewater – it’s not even close to plus.”
It was decided to buy the pumps out of the riverboat revenue fund, after Cockburn asked if, legally, there was “some pocket we could pick.” Free added that they’ve done that in the past, but always come back to where they were before in the fund balance.
Council President Dan Cochran said he agreed the pumps were needed, but questioned why the department had spent $275,000 on equipment in recent years.
“It’s time for a reality check, you have to put the money where money belongs,” he said, adding that they need to “apply some science” to how they spend money and look at what other towns are doing. “It’s got to stop, because we’re getting nowhere.”
Council later tabled any action on re-establishing cumulative fund rates, which members observed would raise many residents’ taxes by at least $600 a year. Free said she started the process of re-establishing the rates for the first time in 20 years as a way to bring in more revenue.
Council members expressed an unwillingness to set the rates higher without first exploring other avenues, like reigning in spending, accounting in more detail how money is used or raising money in other ways. Part of the challenge is that Milford has a tax base of only about 1,500 residents, Cochran observed – and it’s not growing.
Councilman Doug Ruch suggested a $5 surcharge for solid waste pickup, which the town currently covers out of the general fund.
“It’s a baby step, but we’re dealing with other people’s money here. If we put a $5 surcharge for waste pickup, we might get $30,000 a year,” he said. “As a taxpayer, I’d rather see $5 on my utility bill than an extra $600 a year.”
Cochran said that seeing Milford spend more than neighboring towns for department head salaries and equipment “makes it tough for me to put more money back into this system.” Till they fix it, he said, he can’t support something like re-establishing the cumulative fund rates. “If we get control of costs, then when he approach it, maybe the argument will be a little stronger.”
Also Monday, council:
• Accepted the yearly tax abatement report from CTB Inc, which details how the company is meeting the estimates it set when it requested the abatement. Vice President and Treasurer Jeff O’Brien told council that for the company’s current expansion project, which should be done by the end of July, it had projected an extra 380 employees but actually saw 385; and an estimated $2.4 million to be spent on land, but actually spent $3.5 million.
• Agreed to move forward with a plan to put new playground equipment at the town park. Free said the town was approved for a $40,000 grant from the K21 Health Foundation toward the $70,000 cost of the equipment; of the rest, $20,000 must be raised by the community and $10,000 from the town.
• Agreed to let Rigdon ask the property owner of a home slated for demolition at 209 West St. if he would sign the property over to the town instead. If not, they plan to have the home demolished and assess him the cost.
• Approved the employee handbook, which covers issues like vacation days, insurance coverage and licensure requirements.
• Approved road closures May 26 to 28 for Milford Fest and approved covering the costs of portable toilets and electricity to run the rides, as the town has done in the past to support the festival. Applications for the talent show and cutie pageant as well as craft and food vendors are available at the town library and clerk’s office, council heard.[[In-content Ad]]
Utilities Manager Randy Veach requested the purchase of two replacement pumps for $6,122, which he characterized as a need, rather than a want, and which council approved. But trying to figure out which fund to take the money from led to questions on why the wastewater department spends more money than it takes in.
The sewer fund takes in about $32,000 a month but spends $33,000, much of it to pay down the bond that funded construction of the wastewater treatment plant, Clerk-Treasurer Joellen Free observed. She said the fund started the year with $17,000 but is now $11,000 in the hole.
“It will never be out of the red?” councilman Bob Cockburn asked.
Free shook her head no.
“Not till the bond’s paid off,” said town attorney Jay Rigdon.
“It’s scary when I look down there,” Cockburn later remarked, indicating a printout of the sewer fund balance. “I expected to see plus figures in wastewater – it’s not even close to plus.”
It was decided to buy the pumps out of the riverboat revenue fund, after Cockburn asked if, legally, there was “some pocket we could pick.” Free added that they’ve done that in the past, but always come back to where they were before in the fund balance.
Council President Dan Cochran said he agreed the pumps were needed, but questioned why the department had spent $275,000 on equipment in recent years.
“It’s time for a reality check, you have to put the money where money belongs,” he said, adding that they need to “apply some science” to how they spend money and look at what other towns are doing. “It’s got to stop, because we’re getting nowhere.”
Council later tabled any action on re-establishing cumulative fund rates, which members observed would raise many residents’ taxes by at least $600 a year. Free said she started the process of re-establishing the rates for the first time in 20 years as a way to bring in more revenue.
Council members expressed an unwillingness to set the rates higher without first exploring other avenues, like reigning in spending, accounting in more detail how money is used or raising money in other ways. Part of the challenge is that Milford has a tax base of only about 1,500 residents, Cochran observed – and it’s not growing.
Councilman Doug Ruch suggested a $5 surcharge for solid waste pickup, which the town currently covers out of the general fund.
“It’s a baby step, but we’re dealing with other people’s money here. If we put a $5 surcharge for waste pickup, we might get $30,000 a year,” he said. “As a taxpayer, I’d rather see $5 on my utility bill than an extra $600 a year.”
Cochran said that seeing Milford spend more than neighboring towns for department head salaries and equipment “makes it tough for me to put more money back into this system.” Till they fix it, he said, he can’t support something like re-establishing the cumulative fund rates. “If we get control of costs, then when he approach it, maybe the argument will be a little stronger.”
Also Monday, council:
• Accepted the yearly tax abatement report from CTB Inc, which details how the company is meeting the estimates it set when it requested the abatement. Vice President and Treasurer Jeff O’Brien told council that for the company’s current expansion project, which should be done by the end of July, it had projected an extra 380 employees but actually saw 385; and an estimated $2.4 million to be spent on land, but actually spent $3.5 million.
• Agreed to move forward with a plan to put new playground equipment at the town park. Free said the town was approved for a $40,000 grant from the K21 Health Foundation toward the $70,000 cost of the equipment; of the rest, $20,000 must be raised by the community and $10,000 from the town.
• Agreed to let Rigdon ask the property owner of a home slated for demolition at 209 West St. if he would sign the property over to the town instead. If not, they plan to have the home demolished and assess him the cost.
• Approved the employee handbook, which covers issues like vacation days, insurance coverage and licensure requirements.
• Approved road closures May 26 to 28 for Milford Fest and approved covering the costs of portable toilets and electricity to run the rides, as the town has done in the past to support the festival. Applications for the talent show and cutie pageant as well as craft and food vendors are available at the town library and clerk’s office, council heard.[[In-content Ad]]
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