VIRGIN VALLEY WATER DISTRICT BUDGET WORK SESSION
VIRGIN VALLEY WATER DISTRICT OFFICE
MAY 5, 2011

Minutes of a Budget Work Session of the Virgin Valley Water District Board held on May 5, 2011, at the Virgin Valley Water District Office at 9:00 a.m. Attending were President Karl Gustaveson, Vice-President Mark McEwen, Secretary Treasurer Kenyon Leavitt, and Board Members Ted Miller and Sandra Ramaker. General Manager Kenneth Rock was not present. Also present were District Hydrologist Aaron Bunker, Administrative Assistant Mary Johnson taking minutes and other interested parties of agenda items.

President Karl Gustaveson called the meeting to order at 9:17 a.m.

Mark McEwen offered a Prayer and Karl Gustaveson led the pledge.

Public Comment – There was no public comment at this time.

Discussion: Board Comments - None
President of Board Comments – None

1. Discussion & Possible Action – Consideration of issues and information related to the District’s proposed budget for its next fiscal year ending June 30, 2012. Issues to be considered may include, but are not limited to, projects anticipated to be undertaken, continued or completed during the District’s next fiscal year; anticipated revenue required for the District’s next fiscal year, and the sources for such revenue; and the anticipated costs and expenses of the District during its next fiscal year.

Karl began by reading the notes at the beginning of the budget packets from Ken and stated that we should just start at the front and work our way through as in the past.

The first item was salaries. Ken’s suggestions were to have company continue with paying the PERS without employees taking a salary decrease; employees receive step increase if warranted. Mary stated that line and maintenance employees were going to take off a day during the week and work at regular time over the weekend when they had to take the well readings. This saved over $13,000 that had been removed already from the budget presented. Also, it was decided not to hire two part-time employees for the summer saving over $19,000. The amount for step increases for those employees eligible totals $12,812.

A lengthy discussion ensued regarding salaries and benefits and whether to cut any of these benefits. It was determined to continue with the budget and return to this item after looking at other items and where cuts may be made.

After beginning to review, only changes being made to the budget as presented are mentioned in the minutes.

Under ‘Office Expenses 5210-00’ it was directed by the Board to look at other means of distributing conservation inserts at a lower cost.

‘Miscellaneous 5240-00’ - $1,000 cut from line items 1 and 3 for a total budget of $4,500.

‘Postage 5260-00’ – Federal Express was taken from $2,000 to $1,000 and it was also determined to put Federal Express billing to the maintenance item in lieu of postage also.

A break was taken at 10:52 a.m. and the work session resumed at 11:01 a.m.

‘Travel & Training 5270-00’ line item #5 for Lobbying & info Washington, DC was removed for $5,000 leaving a total budgeted line item of $19,500.

‘Outside Accounting 5310-00’ increased $5,000 for a total budgeted item of $15,000.

‘Engineering 5320-00’ was discussed, but eventually it was decided to come back to this item after lunch and after meeting with the supervisors for ‘Repairs & Maintenance and Capital Outlay’.

A lunch break was taken at 11:53 a.m. and the budget work session reconvened at 12:30 p.m.

Supervisors Steve Tietjen, Pete Peterson and Rob Faught arriving a little later, were present to review the repairs and maintenance items along with any capital outlay.

‘Well Maintenance 6120-00’ Line item #12 for miscellaneous well maintenance for $5,000 was removed since it was a duplicated item. $10,000 was budgeted for line item #10 for ‘well #31 pump bowls Flowserve 15 EHM”.

‘Tools and Supplies 6140-00’ line item #2 for $1,500 was eliminated.

‘Chemicals (Chlorine) 6210-00 increased $20,000 for a total budgeted line item of $205,000.

Under ‘Maintenance Reservoirs 6350-00’ line item #3 for diving services would remain at $5,000 in lieu of $25,000.

‘6375-00 Line Maintenance’ was increased $25,000 on line item #1 for a total budgeted line item of $185,000.

‘Fire Hydrant Maintenance 6385-00’ was increased $4,000 for a budgeted line item of $7,500.

Capital Outlay was the next section to be reviewed. ‘1505-00 Building and Improvements’ line item #1 for site improvements for conservation was removed for $12,000 where this item was already budgeted for under ‘General Maintenance 6130-00’.

‘Production Wells 1510-00’ was reviewed, prioritized and determined if items should remain in capital outlay or moved to well maintenance. Line items, as presented, were removed: #4, #6, #7, #8 and #10. Line item #9 for PRV discharge line @ site #32 drain line was increased to $205,000 from $80,000 and was put as the number one priority for the District. Line items #1, #2, #3 and #5 were removed from capital outlay and moved to well maintenance 6120. These items were then prioritized with #1 at #1; #2 at #3 and amount increased to $100,000 from $80,000; #3 at #2 and #5 prioritized as #4.

Under ‘1520-00 Transmission Structures’ the 120 interchange was discussed and how much money should be budgeted, if any, or wait until the 118 interchange was constructed. It was determined to have staff review this issue and have information available at the next meeting.

‘Distribution 1570-00’ - line item #15 for $30,000 was removed.

‘Machinery and Equipment 1580-00’ - $4,200 was added for a steam cleaner. Line items #1 and #2 were removed for an ending budgeted line item of $11,000.

‘Office Capital Assets 1650-00’ – line items #3 and #6 were removed leaving a total budgeted line item of $5,700.

The Board then went back to Contracted Services, ‘Engineering 5320-00’ and line item #1 was decreased to $30,000 for the current, annual contract with Bowen, Collins & Associates. Line item #2 was decreased to $20,000 to pay the remaining amount from contract entered into for the secondary feasibility study with Forsgren Associates, Inc. for $30,000. Line item #3 was renamed to outside engineering services and budgeted amount increased to $50,000 for a total budgeted line item of $100,000.

Also under Contracted Services, ‘Board Members Fees 5350-00’ – line item #2 was increased $2,000 to make it $5,000 for a total budgeted line item of $14,600.
After discussion, Operating Revenues was decreased $200,000 for a total budgeted line item of $7,062,000.

Salaries were again discussed with the only change coming from removing the part-time employees for $19,200, which this in turn would remove the social security from the Taxes section. With a proposed final budget of $1,016,769 for Salaries & Benefits, a 5.6% decrease from last fiscal year budget was proposed.

2. Public Comment – There was no public comment at this time.

3. Adjournment

President Karl Gustaveson adjourned the meeting at 4:22 p.m.

NOTE): The minutes of this meeting have been tape-recorded and will remain on file in the District office for a one-year period for public examination.

•  Budget Work Session Minutes: 2011-05-05 (.pdf 20.K)