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Efforts continue to provide a balance budget for the Town of Federalsburg, according to Councilperson Brandy James at the Aug. 18, workshop.
James reported that she and town treasurer Jamie Washington reviewed line item expenses for the wastewater and water portion of the budget and found system maintenance and emergency repairs proposed expenses are inflated.
Washington is attempting to pull apart the items in the budget, a task made difficult because of little to no documentation and a previous practice of shifting monies budgeted for an item to a different line item. James gave the example that under the wastewater section of the budget, monies budgeted for vehicle maintenance may have been used to pay for maintenance of vehicles not connected to wastewater. “As we pull this apart, trying to make sure we keep the apples to apples and oranges to oranges,” James said.
The Mayor and Council discussed at the July 21 public forum that debt service is one of the issues impacting the town’s finances. James highlighted an example wherein previously town leadership had taken out a loan to pay for buying into a pension system as a benefit to then employees. Those employees are no longer with the town, yet the debt remains in the wastewater section of the budget.
James pointed out that it is not the intention to pull funding for current operational budget items,
“No way are we trying to cut the budget so (the employees) don’t have what they need.” Rather, the budget review is an exercise in finding savings that does not impact operations, usually through application of more accurate budgeting practices and procedures.
The wastewater operation is a large strain on the town’s budget, and the Mayor and Council recognize that the condition of the system means planning for capital improvements. In looking for innovative ways to upgrade the system, the Mayor and Council heard a presentation from American Water, a nationwide owner/operator of municipal water and wastewater systems. The company purchases and operates systems as a private entity. It is a model used in other places, including nearby Delaware, and is currently operating in a few towns in Maryland.
After the nearly hour long presentation and questions & answers, the Mayor and Council did not decide to engage with American Water, instead, each member of the council will continue researching whether such privatization of the system is appropriate for the town. Further conversations and presentations, including public hearing, will take place before a final decision is made.
