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June 13, 2017 Regular Board Meeting

Posted on: July 14th, 2017

Call to Order – Chairman White called the meeting to order at 5:30 p.m. Board members present were J. B. White, Harvey Norris, Eddie Roberts, Jr., & Eddie Ford; Also present were Marcie Seleb, general manager, and Alyssa Hopson, clerk to the board.
Approval of Minutes from May 09, 2017 Meeting – Mr. Roberts made a motion to dispense with the reading of, and to approve, the minutes from the May 09, 2017 meeting. This was seconded by Mr. Ford and approved unanimously.
Fiscal Year 2018 Budget – Ms. Seleb presented a draft of the fiscal year 2018 budget. The proposed budget included $4,467,200 in income and $5,375,868 in expenditures including $2,692,000 in new capital projects. Major construction projects for the year include engineering and materials for nine miles of water main extensions, and completion of Bucksnort Land Application System field expansion. New equipment in the budget includes two pickup trucks to replace two ten-year old ones in distribution fleet and a road boring rig to replace the 1988 model that is worn out.
Utility billing revenue is expected to drop 11% overall, due mainly to the Georgia Diagnostic Prison’s switch to private wells for most of its water. Despite the anticipated revenue reduction, Ms. Seleb did not recommend a rate increase because of the Authority’s overall robust earnings in Fiscal Year 2017 and increasing growth in the local economy.
She noted that the annual electric bill at Burford Water Treatment Plant is expected to drop from $160,000 to $120,000 due being able to switch to generators during load management periods. Fiscal Year 2018 will be the last year to pay for the Sandy Creek loan, freeing up $80,000 a year in debt and interest payments. Ms. Seleb did recommend the removal of charitable donations and employee conference trips from the Fiscal Year budget. This will save roughly $10,000. Ms. Seleb reminded the Board that the wholesale municipal rate will be recalculated in late 2017 when the audit is completed.
A motion was made by Eddie Roberts to adopt the budget as presented. This was seconded by Mr. Norris and approved unanimously. A copy of the draft budget is attached and made a part of these minutes.
Property Insurance Update – Ms. Seleb reported that the Association of County Commissioners of Georgia (ACCG) property insurance total annual premium for July 2017-June 2018 is $40,418. This is an increase of 13.7% over Fiscal Year 2017.
Health Insurance Renewal – Ms. Seleb presented final options for health insurance renewal from broker, Michelle Cole and Associates. Ms. Seleb recommended a Blue Cross Blue Shield/ACCG insurance option that will result in a 23.2% increase. A motion was made by Mr. Norris to accept the rate. This was seconded by Mr. Roberts and approved unanimously. A copy of the renewal options are attached and made a part of these minutes. Middle Ocmulgee Watershed Plan – Ms. Seleb reported the five-year plan update was approved on June 4, 2017. She noted that the State of Georgia has pledged funds for ongoing watershed activities to protect regional water supplies. The Regional Water Plan Seed Grant study on bromide, funded by the State watershed program, will begin in August.
Manager’s Report
Greer Dairy Road Water Main-The Authority’s crew has completed the wet tap on Georgia Hwy. 36 and installed 60 feet of main on this project.
Ready Pac – Ms. Seleb presented a copy of an e-mail from Bert Larisy of Ready Pac. The company is requesting assistance from Butts County in pursuing a grant for purchase and installation of a green sand filtration system. A copy of the e-mail is attached and made part of these minutes.
Upcoming Special Purpose Local Options Sales Tax (SPLOST) – Ms. Seleb reported that she had been asked by County Administrator, Keith Moffett, about the Authority’s thoughts on using a large portion of the next round of SPLOST to develop pockets of sewer service throughout Butts County. Ms. Seleb had provided Dr. Moffett with an e-mail summarizing costs of expansion that have been explored by the Authority. Board members discussed this, with the general consensus being that the Authority continue to focus wastewater expansion on the Interstate 75 corridor. A copy of the e-mail from Ms. Seleb to Dr. Moffett is attached and made a part of these minutes.
Joint Government Meeting – Board members were told about the quarterly joint governmental meeting to be hosted by the City of Flovilla on July 20, 2017.
Water and Sewer Statistics – Water and sewer pumping and billing numbers for the month of May 2017 were reviewed. The average daily finished water pumped in May to the Authority, Jackson and Jenkinsburg from Burford and Stewart plants was 2.3 million gallons per day, with a maximum of 2.6 million gallons per day. The rolling twelve-month average loss was 9.4% with the current monthly average loss at 14.9%. The total amount of finished water pumped in May by each plant was: Burford – 64 million gallons and Stewart – 6 million gallons.
Water billing for May 2017 was $237,316 up 7% from the previous month, and down 1% from April 2016. Sewer billing for May 2017 was $58,215, equal to the previous month, and up 9% from May 2016. Total water accounts numbered 5,520 at the end of April, with 5,042 active water customers. Four water taps were purchased on the existing system during the month of May. Three new sewer connections were purchased during the month.
Financial Report – Ms. Seleb went over the financial summary for Water & Sewer Operations, and Special Purpose Local Option Sales Tax (SPLOST) for May 2017. Water operations income for May was $368,291 with expenses of $162,329. Water capital recovery fee revenue for the fiscal year thus far was $21,862 with an outflow of $73,304 for payment of the Sandy Creek Loan.
Sewer Operations income for May was $75,692 with expenses of $40,847. Sewer Capital Recovery Fee revenue for the fiscal year thus far was $10,947 with $28,655 in expenses. To date, $1,888,631 has been collected in 2013-19 SPLOST, with $883,802 expended.
Total cash on hand at the end of May 2017 was $9,790,991. This is $1,359,077 over the June 30, 2016 balance. Copies of the May 2017 financial summaries, the consolidated fund balance sheet, and the consolidated fund income statement are attached and made a part of these minutes.
Adjourn – A motion was made by Mr. Robert to adjourn the meeting at 6:39 p.m. This was seconded by Mr. Ford and approved unanimously.