Water Authority reserves funds for maintenance
Published 11:41 am Monday, August 23, 2010
Butler County Water Authority voted to transfer money from their general fund to a new maintenance fund to be set aside for wells and booster stations at Monday’s meeting.
An estimated $320,000 will be needed to maintain the wells once the time arrives. The board voted to deposit an initial $200,000 into the account, and approved plans to deposit $1000 per month for the next ten years to cover the total maintenance cost.
The decision does not create any new money for maintenance, but rather serves to separate out funds into earmarked accounts. Previously, all maintenance was paid for out of a general fund.
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Wesley Bass, with Artesian Utilities, explained why this money needed to be set aside.
“The estimated cost to rebuild a well is $60,000, and the estimated life for these wells is about 10 years,” Bass said. “A well may last 12 or it may last 8 years, but you need to have the repair money set aside for when it does break down.”
The board also reviewed a draft of a proposed letter that is going to be sent to all water customers later this year. The letter provides information on how customers breaking the single household per meter rule could come forward to avoid penalties later.
In other business:
-The Board voted to approve the minutes from the July 26, 2010 meeting.
-The Board voted to approve write-offs.
-The Board voted to pay Artesian Utilities Operations Bill
-The Board voted to approve the July 2010 financial reports.