Gardiner Sanitary District
Budget Meeting
May 3, 2012
Meeting called to order by Jackie Degman, present were Board Members Jackie Degman, Charlotte Hinshaw, Dixie Hash, and Mike Quartararo. Budget committee members present were Mary Chambers, Dennis Conger (budget committee chairman), Kathy Quartararo (budget committee secretary), George Degman, George R. (Ray) Potter, and Ken Wood.
Written copies of the proposed budget, and profit and loss report were passed out. Dixie nominated Dennis as budget committee chairman, seconded by Charlotte, and the motion passed with a unanimous voice vote. Dixie nominated Kathy as budget committee sectary, George D. seconded, the motion passed with a unanimous voice vote.
Dennis called the meeting to order, and asked for clarification of the P & L report. Mary explained that the numbers used to estimate the budget were to take the current P & L numbers, and the amounts still due and use that total to estimate next years budget numbers.
Dennis asked for clarification on the revenue column. Mary explained there is probably not much to discuss unless there is any unexpected income she is not aware of. Dixie explained there is still time to amend the budget as needed going forward.
Dixie and Mike explained that costs of sewer use and connection fees have gone up each year, Jackie said the fees have doubled in the last 5 years. Dennis wants to account for the changes on the next budget. Dixie explained the engineering study needs to come before the final budget for the best accuracy.
Reading from the proposed budget, Mary stated the estimate was for 56,000 in taxes from the county. There were no questions, so the group moved on to page 2 of the proposed budget.
Payroll was discussed, George D asked if this was an estimate. Mary said, payroll costs should be lower going forward because the contract with Ray Davenport is ending.
Audit fees were estimated a bit high. Mary explained we have a contract with our accountant, and she expects the cost to be a bit lower because it has been taking a little less time.
George D asked who our Attorney was. Dixie said we use Nate McClintock from Coos Bay. George D thought the budgeted attorney fees seemed low. Dixie and Dennis both agreed the attorney fee section of the budget should be raised. George emphasized this is an area that shouldn't fall short. It was agreed by to group to adjust that number up.
Next, Mary noted the printer in the office has been acting up, and will need to be replaced in this budget cycle.
George D asked for clarification on the Election Expenses entry, and suggested the number should stay as it is.
Mike Q asked if the insurance numbers are realistic. Jackie said the pumps were added to the insurance this year, and because this is a special district, the numbers may seem low, but it is good coverage.
George asked what the electrical expenditures were per month, and with that information, suggested the estimates for utilities were appropriate.
Jackie asked if the amount allotted for engineering was realistic. Dixie thought more money should be added to engineering, Jackie suggested 26,000. and the others agreed.
The Reedsport Disposal Plant Contract item was deemed far too low. After an explanation, Dixie recommended changing that number to 121,000. to more realistically represent the true costs to the Gardiner Sanitary District. Dennis interjected that there is more info to come regarding the final numbers, and then he clarified the repayment recommendations listed on the proposed budget. Dennis is currently working with Reedsport on these final numbers.
In the Repairs and Maintenance category, Dennis asked for additional information. Jackie said one new pump is coming, Dixie said the existing pumps are old, and George D reiterated that it's better to have allotted plenty, than too little monies in this category. The number on the proposed budget is approximately the same amount as last year, which was on the high side.
Dixie spoke about Professional Services. It was asked what these were. Mary explained they were mostly accountant fees.
The next category is Miscellaneous. Mary said the number is generally between 1,600 and 2,000. Dixie asked if that was agreeable to all, George D was followed by the rest of the group in agreeing with Mary and Dixie.
With the changes made, the group added up the Total Materials and Services and corrected that column.
George asked for clarification on what was included in the Capital Outlay category. Mary and Dennis explained it was for large purchases with a longer life.
Next, the group discussed the Debt Service category. This is mostly the DEQ loan. Dixie explained the DEQ is well aware that the state has extended our time to begin payments on this loan.
Dennis opened up discussion on the Transfers Out section. Dennis wanted to clarify it is estimated. Mary said yes, and explained this was mainly used for system replacement.
Dennis then mentioned the Operating Contingency section was then absorbed by the changes made.
Jackie then made clear to the group that this plan has been adapted to the changing budgetary needs of the Gardiner Sanitary District. This past year, the trick has been to maintain the budget until the big decisions are made in the future. George then asked if, after this meeting, and the city contract is drastically different, can this budget be finalized at the next meeting? Mary and Dennis both responded, yes.
Discussion then turned to the timing of the next budget meeting. George motions to meet again on May 24th at 6pm. Kathy seconds.The motion passed with a unanimous voice vote.
George then motions to accept the changes made to the budget, which was seconded by Ray. The motion passed with a unanimous voice vote.
At that time, Dennis asked all who approved the changes to the budget proposal say aye. The motion passed with a unanimous voice vote.
Dennis made a motion to adjourn the meeting, Dixie seconded, motion passed by unanimous voice vote and the meeting was adjourned.
Submitted by Kathy Quartararo (Budget Committee Secretary)
