The Budget Workshop was held in the Mohawk Valley Water Authority’s Board Room, 1 Kennedy Plaza, Utica, NY on Monday, September 21, 2020 at 5 PM. The workshop was virtual due to COVID-19 Emergency and State and Federal bans on large meeting or gatherings and pursuant to Governor Cuomo’s Executive Order.
The following Board Members joining virtually: Bruce Brodsky, Vincent Coyne, Elis DeLia, Mark Ford, Luke Lewis and Bette Szesny. Members joining by phone: Rocco Arcuri, Dennis Bova, Richard Karam and Joseph Samson. Absent: Dave Corr and Frank Mutolo. Present in the Board Room: Patrick Becher, James Korfonta, Suzanne Harmon, Geralyn Powers, Phil Tangorra and Jim Mack.
Budget Assumptions/ Highlights
- 1.0% on Water Rates = $225,000;
- Overall budget is approximately $26.4 million;
- Water consumption “budgeted” flat for 2021
2020 water consumption—currently (3.2%) below the prior year;
- Other revenue of approximately $1.90 million (includes penalties, tap fees, water searches, billing services, lab fees);
- Cash Carried Forward $1,115,000 for 2020; $250,000 increase from 2020;
- 2020 Bonding Includes approx. $588,000 new debt service—2.3% on rates;
- Employee roster 88 budgeted positions; same number as current year;
- Overall salaries and wages anticipated to have a mild increase of approximately 2.7%;
- Operating costs increasing approximately 4.75%; (not including personnel costs);
- Infrastructure Maintenance Funds (IMF) funded at $600,000;
- Health Insurance anticipated to increase only 1.2%;
- NYS Retirement –close to 2020 level at ($678,000);
- Workers Compensation Insurance—Increase 5.0% ($416,000);
- Property & Liability Insurance—estimating 7.0% increase ($256,000);
- PILOTs reducing ($20,000).
A few Board members asked if there was something that the MVWA can do to minimize any rate increase. The staff suggested that they could restructure the debt service associated with the 2020 bonds. The financial advisor will be tasked with this proposal.
The Budget Workshop adjourned at 6:05 PM.