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HomeMy WebLinkAbout1998-06-25 Water and Sewer Advisory Committee MinutesQ' . WATER & SEWER ADVISORY COMMITTEE MINUTES June 25, A meeting of the Water & Sewer Advisory Committee was held at 7:40 P.M. on Thursday, June 25, 1998 in the Berger Room, Reading Town Hall, 16 Lowell St., Reading, MA. In attendance were Chairman Gail Wood, Secretary Stewart Chipman, Committee member Richard Moore, Finance Director Elizabeth Klepeis, Town Accountant Richard Foley, DPW Director Ted McIntire, and Larry Walsh from the Reading Advocate. Meeting Minutes It was moved by Stewart Chipman, seconded by Gail Wood and approved by a vote of 2- 0-1 (Moore abstaining) to accept the minutes of June 16, 1998 as corrected. Stabilization Fund Town Accountant Richard Foley explained to the Committee that the Town of Reading operates enterprise funds in water and sewer under the provision of M.G.L. Chapter 44 Section 53F 1/2. Stewart Chipman indicated that $200,000 is held in the Water and Sewer Reserve/Emergency Funds. Is there any way to put aside any more money to assist in stabilizing the rates? How much money can be put away for this purpose? We are actually holding the rate payers money. Gail Wood feels that it would be a Selectmen's policy to set the amount within such a fund. Richard Moore stated that there is an effort not to change the rules behind everyone's back. Peter Hechenbleikner wants to bring it to Town Meeting. Richard Foley stated that the Enterprise Fund requires yearly appropriations and funding by Town Meeting action, and the Town can appropriate extra monies to develop surplus under the law. Beth Klepeis indicated that total funds can be accounted for within a total water reserve fund and the establishment of stabilization monies within a reserve fund would be a policy of the Board of Selectmen. She also indicated that the Reading Municipal Light Department has a Stabilization Fund in $6,000,000 to $7,000,000 range and a total budget of about $50,000,000. The Light Department is considering increasing the Stabilization Fund in preparation of deregulation. In answer to a question by Gail Wood, Beth indicated that the establishment of a Stabilization Fund in water and sewer would have no effect on the Town's bond rating. According to Beth Klepeis and Richard Foley, monies are put into the water and sewer enterprise funds from unexpended operating budget monies, grant reimbursements, and other revenues. It requires a vote of Town Meeting to appropriate monies from the enterprise funds and it is legal to designate a portion of the Emergency/Reserve Funds as Stabilization Fund monies. An article on the Town Warrant is not necessary in order to establish a stabilization monies within the Enterprise Funds. Richard and Beth will submit information to Peter Hechenbleikner outlining the law and flexibility within it. The Committee thanked Beth and Richard for attending the meeting and for providing them with information and direction. General The next meeting will be held on July 15, 1998 the only item of discussion will be establishment of a Stabilization Fund and Richard Moore will provide a draft of a policy to Committee members prior to the meeting. Ted McIntire will also provide per capita per day usage for different types of facilities to the Committee. It was moved by Richard Moore, seconded by Stewart Chipman and approved by a vote of 3-0 to adjourn the meeting at 8:58 PM.