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Committee questions rising utility charges tied to Laconia campus sale; officials point to Winnipesaukee River Basin fee spike
Summary
Committee members pressed state administrative officials on May 16 about sharply higher utility charges tied to the Laconia campus, with officials attributing most of the overrun to fees from the Winnipesaukee River Basin wastewater project.
Committee members on May 16 pressed state administrative officials about sharply higher utility charges tied to the Laconia campus, an item considered as part of budget line 25 1 1 1.
Senator Carson raised the initial question asking which buildings required heating and why the state was incurring charges for vacant structures. "Why are we paying to heat empty buildings?" Carson asked. Charlie Arlinghaus, commissioner of administrative services, said the budget line for "heat, electricity, and water" is a utilities line and does not necessarily reflect heating alone. Arlinghaus told the committee the charges for the Laconia campus were not primarily for heating buildings, though a few — including the building that houses E 911 — are heated to keep equipment operational.
Arlinghaus said the largest part of the overrun relates to a wastewater treatment arrangement: "The lion's share of it is the Winnipesaukee River Basin project," he said. He described the basin as a multi-town cooperative with a fee schedule that rose substantially this year; because of the agreement terms the state is required to pay the increased charges. Arlinghaus said renegotiation would be possible only if the state kept the property, but because the property is being sold the new buyer would need to negotiate their own arrangement with the cooperative or the city.
When asked whether the spike represented past actuals or an anticipated cost going forward, Arlinghaus said the requested adjustment reflected the actual charges for the year. He added that utility charges will be trued up at final closing, which he did not expect to occur for roughly 12 months. The committee requested further analysis of why the Winnipesaukee River Basin charges rose; Arlinghaus said staff who manage plant property could provide the detailed analysis and that the information would be sent to the Legislative Budget Assistant (LBA) for distribution to members.
Senator Grama moved adoption of item 25 1 1 1 and Representative Griffin seconded. The committee approved the item by voice vote.
