Water department budget tight after insurance changes and Levy Park main repair

The water department's enterprise budget was reviewed Oct. 29, with staff explaining that water operations are funded solely by user fees and that recent benefit elections and a large main repair tightened short-term cash.

Staff told the Budget Committee that two water-department employees moved from single medical plans to family plans during open enrollment, which increased the health-insurance line. Because water operations use an enterprise fund (end users pay for services), those increases fall on water rates and the department's budget rather than the town's general fund.

Staff also noted the department had roughly $69,000 remaining in its operating account for the rest of the year and that bills are timing-sensitive because quarterly customer payments and invoices affect cash flow. Committee members asked about a large overrun in a water-main expense line. Staff described a recent failure at Levy Park involving an approximately 18-inch pipeline that had been angle-bored under the river; the seam at a splice failed and required an emergency repair that drove current-year costs above the normal line-item amount.

The Budget Committee approved the water department budget as presented and discussed grant and loan possibilities for larger main replacements; staff said some grant eligibility depends on area median household income and that some program awards may come as low-interest loans rather than grants.

Committee members were told the department has a water-main capital reserve fund and an enterprise fund that can be expended with selectboard authorization for major repairs.