Georgetown Divide Water District has first balanced budget, and funding of the Reserve Funds, since 2005
GDPUD June budget meeting:
Board Members Present: Director Kathy Otermat, Director Ray Griffiths, Director Maria Capraun and Director Bonnie McLane. George Sanders, PE, IGM, Director Krizl absent
PLEDGE OF ALLEGIANCE
APPROVAL OF AGENDA
APPROVAL OF MINUTES
The Board approved minutes for April 15, April 28, May 13, May 19, May 20, 2014.
APPROVAL OF DECLARATION OF ELECTION
Motion passed to approve
PSOMAS Amendment #3
IGM George Sanders, PE, spoke of the contract with PSOMAS, he is working with CDPH and moving forward with necessary paper work initiated by Gary Hoffman, past IGM. George has a good grasp on the mandated requirements of the state, and he has an even better grasp on the proposed construction. It is good to hear he is including operators and field crew on the design and decision making on the ALTP. He will be serving as Operations Manager and will be in an excellent position of oversight on the ALT project, and he will serve the district well.
Motion presented by GM for $80,265 for PSOMAS, board approved.
2013 AUDIT APPROVAL
Discussion by the board of the audit. The Board accepted and approved the audit unanimously.
Board Pres Bonnie McLane thanked the audit committee: Rick Gillespie, Ray Kringel, DirectorMaria Capraun, Treasurer and Norm Krizl.
Pres McLane stated the communication letter contained comments that were systemic of the district's problems, the reason Director Otermat, and Director Capraun and herself ran for the board, items ie gas card & mileage on district trucks out of sync, no control over cash collected, Form 700's not completed, lack of accounting policies etc. etc. She stated the narrative was as thorough as a Grand Jury Report and would be a guideline for the district to follow to bring it into "business and legal compliance". She urged the public to read the audit. (should be posted after approval) Director Capraun indicated IGM Sanders was already implementing the recommendations.
Staff presented and explained revenues and expenditures. Jack Podsedly spoke to the need of making "hard decisions" and quit "kicking the can down the road", he said no way to run business "in thered". He said the district had always been run with 16 workers, since 2001 numbers were inflated and we now have 19 FTE. Dennis Goodenow spoke to the need for a plan to present the public on where the district wants to be in 5 or 10 years (this obviously would include public comment & rates commiserate with future plans) Chuck Thiel, OE39 spoke to the need of keeping all the workers, Prs.McLane stated there was no money for projects to keep 19 FTE busy.
Resolution 2005-5 to fund Reserve Funds had never been implemented, Director Capraun gave the history and that Reserve Funds had originated into 8 categories but were later combined and included in operating revenue. She spoke of the need for property tax to go into infrastructure and operating expense coming from rates..........(in a perfect world)
Dale Miller, Chair of the Finance Committee presented latest figures and gave an oral presentation and told the board inaction should not be an option. He recommended fully funding the Reserve Account and setting goals to fund the CIP. He had just received a report from RCAC that gave the district a dismal 56% grade on fiduciary responsibility. He simplified a myriad of numbers into very simple terms that the district was in desperate need of increased revenue or reducing expenditures.
Prs McLane, offered to relinquish the gavel, her position as president, to make a motion to reduce labor by 210k. Director Kathy Otermat spoke to the need of a balanced budget and the numbers kept increasing at the district and encumbering the rate payers with more debt. She said this was unfair to "the people" and the district should operate within a balanced budget.
MOTION by Director Otermat & second by Director Capraun: To accept the budget proposed by the Finance Committee and to reduce expenditures by $109,300k. Motion passed, Yes, Capraun, McLane, Otermat, NO, Griffiths
REDUCTION IN EXPENDITURES!!!!! Thank you ladies........
IGM stated it would be difficult to reduce expenditures, but he would respect the direction of the Board. The Finance Committee would continue working with staff on best ways to implement the 110k reductions. Rotation of hours, part-time retirees to reduce overtime, reduction of hours, etc. Special thanks to the many volunteer hours by the Finance Committee: Don Waltz, Dale Miller, Ray Kringel, Rick Gillespie, and liaison Director Maria Capraun, Treasurer.
A balanced budget, and funding of the Reserve Funds...........First time since 2005!!!!
Conference with Legal Counsel
Board to consider appointment, employment, evaluation of performance, discipline or dismissal of employee pursuant to Government Code Section 54957.6
ADJOURN TO OPEN SESSION
Modification to IGM contract to enable him to make adjustments to personnel.
Next General Meeting July 8, 2014, 5:30p.m. at the District Office
Divide Citizens for Water is a PAC that was established in 2006 to oversee the water district by reporting to the people. Support a program to replace, maintain, and extend water service to the people of the district, in a reliable inexpensive way. The credit or blame is to go to the PAC not any one individual.