Um, we have in front of us our agenda that was presented to us. Um, and just before we get into the agenda, I just like to make a comment to whoever did the minutes of the previous meetings that we're going to work on in terms of
uh showing this item number two. I'd like to uh thank them for their work on that. Um, it goes back a few months. Um, whoever brought this up had a good memory and um, I just like to mention that. All right. So, that takes us to
item number one, the citizens input. Um, Mr. Ferland, is there anybody here want to do any citizen input? >> No, nobody has provided any citizen input and I don't see anybody present for citizens. >> Very good. Okay. I take this to item number two. the minister the previous
meetings held on November 6th and November 12th um I've had the opportunity to reveal it um did bring back some memories from what we were discussing back then.
Um does anybody have any comments or corrections they want to make? If not, I'll entertain a motion to approve the minutes of the previous meetings held on November 6th and November 12th of 2025.
Anybody have any comments? If not, I'll obtain a motion to approve. >> I'll make that motion to accept the minutes of the previous meeting for November 6th and November 12th, 2025. >> I'll second that motion. >> All in favor? I
>> I >> Well, I Okay, motion pass. >> Okay, it takes us to the third item, which is primary reason why we're here. The uh proposed budget that's being
presented as a draft uh for fiscal year 2027 has arrived at $32,44. I'm sorry. 32,44,000
32 million I'm sorry. 32,44,18. Having said all that, um, Mr. Ferlin, I'm sure you want to make your presentation as to why where we're at and why. >> Yes, thank you very much. Uh, and just to run through really quick. So
our budget the budget did increase uh roughly about 450,000 from from last year uh on the uh on the expense side and the revenue side. Um with that though uh just as we had on the water there is no increases to the sewer rate
uh or to the storm water fee. So again there's no increases uh on the sewer rate uh or the uh or the storm water fee. Uh as I run through the budget for the uh for the sewer as proposed again a number of things that uh that
came through this year. Uh the realization of additional usage uh a primarily through I believe through uh res mills that were offline uh that were not used no water uh that have been turned into residential uh units or
other uh increases throughout the city. watering large water uses uh expansions within the industrial park and and different things like that. Uh so I I don't like to actually take any of those, you know, numbers and putting
them into a budget until we actually realize them. So that's what I've done this year. I've increased some of that uh sewer sewer user charge uh based on that. Leans, those increased as well because our rates have in the past increased. So while the the lean amounts
we lean almost the same amount of customers uh but since the rates are larger it's a larger uh dollar amount that we do lean. Um so our revenue sides those were the those were the major changes within there. Uh one thing that I do want to say you know accepted
revenue again if you remember I think uh I think if you look back years ago we were carrying about $300,000. >> Yeah we're up to a million. We're up to a million dollars and I see I uh expect that we'll surpass $1 million within this current fiscal year uh and next uh
fiscal year as well. Uh again, the office staff uh has done an excellent job. We're setting up uh protocols for billing uh so that by bi-weekly bills go out to all of our customers, all the staff down in the plan here have it down pat on, you know, getting the different
customers in, getting them unloaded, getting them so that they can get off site and get out to be able to uh to pump more. Uh they've done extended hours up to 6:00 at night for receiving. So the guys don't have to fill their truck, wait till the next day to empty it. they can empty it at night, next day
right out to another job to to bring this more. So, uh, you know, that's that's a testament to the staff here at the plant as well as, uh, our staff, our building staff within the office, uh, their good work that they've done. >> I'll drink to that. >> Thank you. Um the uh as I've read down
there again within our uh sewer plant salaries uh there is uh there is one additional FTE uh full-time equivalent that we did add within uh within the uh sewer salary line item. Uh that is for a
uh uh inspector and mockoff coordinator uh damage prevention coordinator. Uh so through the state office of damage prevention which essentially is dig safe um they're getting more and more active about uh they've always been very active
in electric cable gas and stuff like that. Uh they're getting a lot more proactive when it comes to water. So, we install water utilities. Uh, a mocking off, making sure the mockoffs are done correctly, when there's damage done to one of the utilities, uh, that you know,
inspections are done afterwards, the proper paperwork's filed afterwards. Uh, so it's becoming more and more of a burden. Uh, so I added one additional FTE to be shared between water and sewer. I carried it in the sewer budget. There would be internal transfers to uh,
to share the cost. >> We looking at 50/50 Yeah. Okay. Yep. Uh but the person would be uh in in charge of the damage prevention program as well as inspections. Uh so we do uh water service inspections. Uh the engineering
department has always been delegated to do the sewer service inspections. So sometimes we're send water sending one person out. Engineering sends in one personnel to both look at the same exact trench or right next to each other. So this will be one person that that'll be
their job to be able to do both and >> to to gain some efficiencies there. >> That makes sense. >> Yep. So uh that was uh salaries and then the the some cola uh through the CVA within uh within the salaries as well. Uh as you run through some of the other items.
>> Paul, can I ask you a question with regard to the salaries? Um you had a you had a position where the person left. Um is that position still open? >> Yes. So we still do have we we have a couple of positions open within sewer
right now. So we have a uh a safety coordinator position which has been uh within uh within the budget for a number of years which we trying to find the right person uh to fill that that would be a shared position between water and sewer. Um then we oversee both both
department safety uh programs. Um, and then we also have a project manager position that is still open out of my office. Uh, that's somebody that would uh that would work on the projects oversee uh as well as uh the financial management of uh of all of our
construction projects uh in assistance with budget uh budget type financial issues and things like that. >> You have anybody on the cusp um at this point? Right now there is nobody that we have uh that we have pending or or uh interest showing interest in that
position but uh you know the positions are open. So anybody know somebody >> I see the safety coordinator on and then under project manager are those >> so that would be their pay grade. So you got to choose a pay grade but their title >> so the safety coordinator is payraed
under a project manager. Yes. And you have a project manager that's open. You said >> yes, another project manager that >> do I don't see that on on the back page. I see two vacant engineer aid and then a deputy as you know for the last few
years under yourself. >> So the deputy administrator that position >> that's would be a project that's budgeted as a deputy administrator but it could be somebody that comes in as a project. Okay, >> that's how that's how that's how I've
worked that one in the past. >> Okay, >> that's why I budget question. >> No, that's why I budget it as a deputy administrator. If I do find somebody that is 100% right to fill that title, we would have to budget in there to fill that position. >> Okay.
Uh so as I move on to sewer treatment plant expenses, uh those were uh pretty flatlined uh from from last fiscal year to this year. Uh so that's the sewer treatment plan expenses. When you get
you get into and that's the first line of sewer treatment plan expenses, when you get into the second line of sewer treatment plan expenses, uh those did increase. Um you uh as I spoke with on the water side, there's an increase in
electricity that we're going to be dealing with currently within this fiscal year. Uh and then moving into FY27. Uh so that was realized within the FY27 budget with an increase of about $300,000 in electrical cost. >> Excuse me. Can I stop you there? >> Yes.
>> Okay. Um what's the basis which what was the basis that increase uh in terms of your discussion with um in this case constellation or maybe it's national grid in some part
of it so forth um are they are they are they grim about what they're talking about? >> Yeah. So so yes so so it's a contract that the city goes into as a whole. So school. >> Oh, is that contract already already
made out and and in the contract it says for this year your your your rates will be this? >> Yeah, I I so the city itself and it went through city operations as well as purchasing department from my understanding. Um in the in the
discussions on on those rates in the term of that contract. Uh and so school department falls under all city government buildings fall underneath that contract. uh water and sewer will also piggy back and fall underneath that contract. >> How far how many years out does that contract go?
>> So, the last one we were in was a four-year contract. Um the one that they entered into this year, I believe, is a three-year contract. >> So, we're going into the second year of it. >> No. So, so this contract was actually
just started back in January, I believe. So, the old one expired in January. They started >> silver in the fish. Yeah. >> Right. So, so it's a it's tough too because now we had to within this current fiscal year I have to find and
make savings to make up the difference for it within this current fiscal year. >> Got it. Okay. >> So, the electricity uh again increased uh as we go down the line. other professional services uh which is the contract with our on& and M contractor
down here at the plant in provok uh there is their uh yearly increase uh but if you look at the percentage that it increased uh it's it's higher than uh the normal one uh so there was an FTE that was uh that was added down here at
the plant so they are to provide 50 employees per contract that's how the contract went out uh there's been a number of changes uh nifty's permit aside Everybody knows we have draft nifties permits out there which will have major impact straight across the board. Uh but some of the other permits
that we have uh so as you go into the uh IP program industrial pre-treatment program uh which deals with any of industrial users within the city and the treatment of their uh chemicals or or their you know their discharge coming
into our system. Uh there's been a lot more that's been added over the years. Uh and we need to we need to be more proactive out about getting out there. Uh talk about different things. Dentist office. So all dentist office are actually supposed to be part of the IP
program because of some of the uh things that can come out in their wastewater and how it can affect the system. Uh so uh that program needs to be upgraded. So um the additional person that infroach will be providing will be for that
will be for uh for that also the MS4 municipal sewer storm uh separated system permit. Uh so that's a general permit that's issued from EPA to the state. The state then delegates it to the independent municipalities. Um so
that permit uh was just uh renewed. It's on a fiveyear cycle like the NIP's permit is. Uh the last one was seven years ago. Uh we were really up to date with the MS4 permit uh up until the end of the existing permit. Uh the new
permit that's coming online uh starts to grow on that. So the MS4 permit deals a lot with uh separated storm systems primarily uh and the areas that those are in. Um it there's requirements of everything from tracking the amount of
times that the streets are swept uh to uh calculating the amounts of nitrogen that is taken out of the storm water by BMPs. So whether it be retention ponds or filtration systems uh before it's discharged into the natural bodies of
water uh and stuff like that. Uh so having somebody to oversee, monitor and maintain uh and track that permit, make sure that we're staying up to date with all of those. Uh so that's what the additional FTE is for through our ODM contract.
>> Okay. So um you're looking to um increase the need for people to do this. So we're looking at um Infram to provide those services. Are we going to have to make an addendum to their contract?
>> Yes. >> Okay. >> Yep. There would be there would be an addendum to their contract. >> Okay. Fine. Okay. Um are we good? All right. I got no question. >> Okay. Uh other things uh one one other thing that I want to mention. So some of
the savings that we were able to realize within this um that uh allowed us not to increase the rates uh you know we realized some additional usage uh within this actual fiscal year's budget. Uh chemicals same thing that we had on
the water side when we went out to bid this past year. Chemicals came in lower than we projected for last fiscal year. So, we adjusted that uh for this fiscal year. Uh as well as some of the uh some of the operational things that we've been doing at the plant here. Um you
know, Infamach, they've been uh they've been upgrading and repairing some of the things uh that were a little bit off. Um you know, draft tubes within the secondaries were fully reconstructed within house staff, which helps the settling within the secondaries. help
with the settling within the secondaries reduces your TSS coming out on your effluent that reduces the amount of chlorine that you need to be able to kill the bacteria in the water before you discharge it. Less chlorine, less bisulfite uh down right down the line.
Uh so, you know, some of those things we actually realized within the budget this year as well. So, some of the operational uh some of the operational savings. Uh and then we al almost had about uh about $400,000 decrease within our debt service uh for this year. Um
>> Paul, can I stop you there? with respect to the decrease in the debt service. Um, which which projects came off that you think hit the hit the label on the head? Cuz I've been, you know, I'm thinking we
just finished going through $123 million on a loan order thing back from 2012. Yep. >> And I'm wondering if some of some of that stuff might have kicked off or what? >> Yeah. So, we had
some of the initial uh sewer some of the initial cso projects >> uh came off on the debt service side. Um >> is the tunnel all done? No, the tunnel is still uh is still on
us uh is still on our debt service, but >> I would imagine portions of it have dropped off though, I would think, right? >> Yes. Yeah. Some some of the small ones. So, and even back you go back to some of the uh some of the early projects. It depends whether they were 20-year loans
or they were allowing 30-year loans back then for some of the larger projects, 20 million, 30 million. Uh, so some of those did go for a 30-year uh 30-year note. Um, >> okay. >> But yeah, uh, again, >> that's fine.
>> Yeah, some of the earlier gen general obligation bonds. I'm looking at these. So, this was a uh this was a million dollar general obligation bond that came off, a $1.4 million general obligation bond that came off. Uh
so and then again within our debt service calculations that that you know with even with these decreases um this includes the uh increase for the $50 million loan that just went on for contract two. So that's how the debt
service calculations did work out. So that uh you know wraps us up where our revenues uh equal our expenses. $32,44,18 uh with a uh sewer rate of $8.11, no change from the prior fiscal year. Uh
and a storm water fee of $50 per eru per quarter. No change to from prior. >> Okay. Um, I just got one more question. >> Yep. >> So, last year's budget, right, we had to make we had to make I thought an
adjustment of about $350,000 in order so that um the rate wouldn't change. >> Yes. >> Right. >> Yep. >> Is that same thing reflected in here? >> Yeah. So, what we what we ended up doing
and this was what came from the city council. So, we had an increase last year. Uh the city council didn't want to see an increase. Uh what the city council asked to be done was indirect cost. Uh so cost that we pay back to the
general fund be reduced uh so that there was no increase within uh within our budget last year. Uh the uh indirect costs were decreased uh last year. Uh if you look at them this year, uh I believe it's a $1 increase uh from last year. So
it went from 800 uh $948,000 that we pay back, which includes health pension uh and the uh general fund um indirect cost that we pay back. Uh now it's up to $948,1.
Uh so it's essentially flatlined. Uh I did work with the CFO on this and work through the uh indirect cost through the the calculations that she had. Um some of the older indirect cost uh had services that we were paying for that we
used to get uh more services from uh that we get less services from now. Stuff that we do more uh with our own staff that used to be provided by the general fund. Uh so those so we decreased some uh some things for that. uh but I have gone through the indirect
cost uh with the CFO and uh have worked with the numbers that she's provided. >> Good. So you feel you feel comfortable with these numbers? >> Yes. >> Very good. Um I don't have any questions. Anybody else from tomorrow? >> Yeah. Do you foresee the council
scrutinizing in any further to lower the rate? Uh you know I I can't predict what the council is going to do say do do say or ask. Uh you know >> every year going down to them um you
know they want to see and the sewer commission and everybody wants to see the most uh the uh most savings for uh for our rateayers. Uh I think proposing a budget and realizing uh you know the savings
that we did uh within the budget really going through and identifying chemical decreases, debt service decreases uh realizing uh increased revenues uh so that there is no rate increase uh I think is is is a real testament to the
sewer commission uh and us to show that you know we're working to try to put no additional burden back on on the rateayers. Uh I think to decrease um just the only reason I think that you would want to decrease would just to be able to say that we decreased.
>> Um cuz if you if you look back to when we went in, you know, when we had Rafelis come in, which was the uh consultant that we had come in and evaluate all of our budgets. uh if you think back to some of their cash flow analysises and some of their uh
projection and analysis, you know, you're you're not going to have a straight line going up. You're going to have different years up and down. If you have a year where you have excess money, it comes out as retained earnings that can help stabilize and reduce the amount
that you need to increase in the future. So by even if you had a surplus by reducing the rate unless it's a drastic and it's going to be projected as a surplus for a long period of time >> because you don't want to raise it the following year again >> right even by reducing the rate you're
just stepping on your own feet because then you're going to have to raise it that much more the next year. So, uh that would be my recommendation to the council last me uh to look at or how the rate could be reduced. And again, you look at you look at the budget, we
reduced everything that we've that I felt we were able to reduce within the budget. >> I'm fine. >> You have another set. I'm >> um that just remind me of something. Um seeing that there's no returned no
retained earnings being used Does that mean we're going to dump more money into stabilization? >> Yeah. So, right now I'm putting together a plan. So, we did have uh retained earnings that came out in both water and sew a fair amount of retained earnings. Uh we are going to take I'm working with
a plan right now with the CFO. We are going to take cuz you know with instability over the past four or five years we have not put uh retained earnings into stabilization. Uh so our plan is to take a portion of our retained earnings and uh direct it into
stabilization have a vote of the council to put in comes to the committee boards then we will go there. Uh the other thing we have some capital expenditures that we're planning on using some retained earnings for so things that we may go out uh go out for uh a loan
authorization for to borrow the money then get debt on board. Uh we're at the point with some of these uh small tomedium projects um you know whether it be a lodge piece of equipment you know that may cost $500,000 or $600,000
rather than uh doing a loan authorization bottom of that money be able to use the retained earnings to be able to pay for those. So I'm working with the staff right now to put that list together. I expect that we'll be back to the both boards uh to propose uh what we may want to purchase out of uh
retained earnings and what we want to transfer to the stabilization. Uh and then we always want to leave some in retained earnings because that helps us with our cash flow even though we're tied to the city and the city really maintains our cash flow for us. Uh we
don't want to zero our whole entire retained earnings out uh because then that hurts everybody's cash flow. Good. Um, we just went through a big storm. You're sure a lot of departments, you
know, had to participate and trying to clean up their areas or even, you know, loan loan equipment to the on the city side to the EPW and all that stuff. Um,
do you foresee any expense coming as a result of having to deal with this storm >> that might come in and throw us off a little bit into the next year? >> Uh, on sewer, not so much. Uh, on water,
there was there was a lot more uh expense. Uh, I can tell you so on on water side, on labor, our overtime expense is is paid for by DCM. Uh so that's paid for by the general fund. Um you know on sewer uh we primarily
maintain our own facilities here at the plant >> right um so uh I don't foresee any uh any additional cost. Uh I was just in a meeting earlier today the city there was a declaration of emergency uh for uh for
the city Plymouth County uh Bonible County uh and Plymouth County. Uh the state is uh preparing to go to FEMA uh for reimbursement of cost. So I'm working with uh my division leaders uh in private the ODM contracted inframock
uh to put together all of the overtime cost uh to be able to provide uh for reimbursement up to possibly 75% uh of that cost if if it does go through. Um >> good. >> Yeah. equipment cost, you know, a number
of and again equipment primarily we're limited on the sewer side of things uh with the equipment that we have primarily stays in the plant. Although after the storm we did have our backho and and other small trucks out in the neighborhoods here helping open streets
up for people that that uh you know their streets weren't even touched yet and stuff like that. So you know I know our staff down here did a great job going through the storm. Uh we had staff that were here at the plant I think what was it three three days straight. Um
four >> yeah three four days straight because staff couldn't get in. They couldn't get out of their house and come in. Uh and the staff here couldn't get home. So the staff uh the staff down here at the plant was phenomenal. Uh they had uh CS
and inflatable mattresses and uh because as the commissions know, the boards know this isn't somewhere where we can just maybe we'll be back after the snow is gone. >> You can't shut the faucets off. Yeah. >> And you can't, you know, not flush the toilets.
>> Exactly. So, um you know, we need to be operational 100% of the time, uh no matter what. And uh our staff did a great job of doing that through the storm. Great job of cleanup afterwards. Uh on the water side, um we go out, we
plow for uh DCM. Uh on the water side, we'll probably have a bit more of an impact with uh with some equipment that was damaged throughout the storm and stuff like that. Our mechanics are working to to get that back together. Uh and then we just uh you know, there was guys again over there that were out
whether they were plowing snow and back hoses or loaders for you know, days straight uh through that storm as well, you know, on on the water side. So, >> well, on on the sewer commission's behalf, I'd like to thank the water
department for anything that you people helped us out with because I'm sure there was catch basins and everything else that were that were blocked up among other things. So, anything you guys helped us out, we really appreciate. >> Yeah. Um, okay. Anybody else have any
other questions? If not, I'll entertain a motion to um approve the sewer commission budget for fiscal year 2027 in the amount of 32,44,18. Will anybody make a motion to that
effect? I make that motion. On item three, proposed budget for 2,27 32,4 >> No 32 million the second
>> 32,44,18. >> Anybody want to second that? >> I'll second that motion. >> All in favor? >> I you can go on an I basis. >> Yeah, I can go. >> Okay. I >> I >> I >> I >> Excellent. >> Thank you. >> Thank you.
>> Budget. Uh motion passed. Okay. Um that takes us to um item number four, Woodward and current proposed storm water asset management. Um in the amount of 250,000. It's my impression,
having read this, this is a grant. Uh, so this is a uh it will end up being a $50,000 loan, $200,000 in grant, forgiven. Yes. >> All right. Okay. Um, and this is something that from what I understand's already started.
>> Uh, we've done we've done some of this, not this particular work. We've done some of the leadup work already to this, but this will be uh this will this will get on underway. >> All right. Anybody have any questions about this? No. Uh what you're looking for, Paul, is
the uh approval in the amount of 250,000 or 200,000? >> 250,000. >> Okay. Unless anybody have any questions about this before we proceed. >> Okay. I entertain a motion to approve
the uh item number four um in the amount of $250,000 to uh deal with the storm water asset management plan by Woodward and Current. Anybody want to make that motion?
>> I'll make that motion for uh item number four, proposal for storm water asset management plan for $250,000. >> I'll second that motion. All in favor? I >> I. >> Motion passes. Okay. Item number five, uh, other business. Does anybody have
anything they want to bring up with respect to other business? >> All sir. >> Okay. Uh, if not, I'll entertain a motion to adjurnn. >> I'll make that motion to adjurnn. >> All in favor? >> I. >> Anybody second?
>> Second. >> All in favor? >> I. >> Motion passes. >> Thank you, gentlemen. Thank you.