WAYNESBORO BOROUGH AUTHORITY

NOVEMBER 3, 2009

MINUTES

Authority Chairman Jon Fleagle called the special budget meeting of the Waynesboro Borough Authority to order at 7:30 p.m., with the following in attendance:

Borough Authority Members – Jon Fleagle, Lee Layman, S. Allen Stine, Christopher Snively and William Pflager

           Borough Staff – S. Leiter Pryor, Director of Borough Utilities

PROPOSED 2010 WATER AND SEWER BUDGETS: Leiter Pryor presented the proposed 2010 water and sewer budgets to the authority for review. He highlighted the requested capital projects and capital items listing. Jon Fleagle led a detailed review of the proposed 2010 sewer budget. Mr. Fleagle discussed the 2010 projected revenues of the sewer fund compared to the anticipated expenses. The sewer fund analysis indicated that there would be surplus in revenues in 2010 do to the elimination of debt payments. Leiter Pryor was instructed to include a $100,000 transfer from the sewer revenue fund to the sewer construction fund in the next draft. Leiter Pryor indicated that the Authority will need a large amount of capital to fund the upgrades required at the sewer plant to comply with the Chesapeake Bay nutrient reduction requirements imposed by DEP. The general consensus of the Authority was to hold off on a rate increase for 2010 due to the current economic climate. They will consider an increase in 2011 based upon the engineering report from Gannett Fleming that is forthcomming.

Jon Fleagle led a detailed discussion of the proposed 2010 water budget. A comparison was made of the 2010 projected revenues verses expenses. A slight deficit in the water revenue fund was pointed out. Leiter Pryor indicated that revenues from water rents were covering operational expenses and that there was $100,000 in capital projects included in the proposed budget. He also indicated that tap fee revenues were transferred into the construction fund for capital projects and that the projected year end 2009 tap fee transfer was in excess of the estimated 2010 capital projects. After some discussion it was decided that a rate increase in 2010 would not be required. Leiter Pryor was instructed to obtain a clarification of the general expense figures and the capital reserve fund transfer from Lloyd Hamberger and incorporate these figures into the next draft of the budget.

Having no further business to discuss, the meeting adjourned at 9:40 p.m. on a Lee Layman/William Pflager motion which passed unanimously.

                                                                      Respectfully Submitted,

                                                                      S. Leiter Pryor

                                                                      Director of Borough Utilities