Milford Utilities Operating ‘In the Red’
MILFORD — Milford Town Council wrestled Monday night, April 11, with how to address its money woes, particularly as they relate to utilities which, according to Joellen Free, town treasurer, continues to operate “in the red.”
At March’s meeting, Free suggested raising revenue through the reestablishment of cumulative funds to their maximum rate. Cumulative funds — capital development, capital improvement and municipal sewers — are revenue streams funded by property taxes and have not been reestablished since 1990.
At Monday night’s meeting, the council discussed the ramifications of this raise. If all the funds were brought to their maximum rate, a property owner could see property taxes of as much as $650 per $100,000. Much of this would be due to the reestablishment of the sewer rate, which would increase from $.03 to $1 per $100 assessed value. Free indicated this amount could be adjusted lower, which would require re-advertising that fund alone.
Council president Dan Cochran expressed his belief spending is out of control. “Until you fix that it’s just throwing money down a rat hole … I’m not interested.” He cited the department heads’ pay, which, he asserted, is 28.5 percent higher than towns of comparable size.
“The cumulative sewer is a need, but as a taxpayer looking at that … it’s a big jump,” observed councilman Bob Cockburn.
Part of Milford’s revenue problem is a small tax base, which is not growing due to limited housing and lessening property values, though the council is actively addressing the latter. Additionally, the 37 percent water tax increase is still new and hasn’t had time to accumulate. The issue was also being discussed in light of budgeting meetings due to start in June.
“I’d like to come at it from a different perspective,” said Cochran. The council agreed and tabled the proposed reestablishment of cumulative fund rates while it examines ways of cutting spending.
Utilities superintendent Randy Veach’s monthly report added little to lighten the mood. The sewer plant is “currently down one pump,” Veach reported, though two are needed to operate efficiently. “It’s a have to,” he said.
Due to the department’s being over budget, the council passed a motion to use money from the riverboat revenue fund to buy two new pumps at $6,122.74. In another motion, $1,344 was allotted to buy new ropes and buoys for Waubee Lake Park.
“We’ve spent $275,000 in seven years on equipment,” Cochran fumed. “We need to apply some science to this … what we really need, not what’s always been.”
In spite of $32,000 in revenue per month, the sewer bond continues to “draw down” cash reserves. “We’ll never be out of the red until bonds are paid off,” said Free.
Other agenda items were as follows:
• Town attorney Jay Rigdon reported the house at 209 West St. remains in violation in spite of a tear down order from the building commissioner. The council passed a motion to approach the owner about turning over the deed to the town to help pay for the demolition.
• Jeff O’Brian, Chore-Time Brock vice president and treasurer, was on-hand to sign the yearly abatement connected to CTB’s addition, on budget and expected to be completed by July 31.
• The council also voted to support Milford Fest by covering the cost of electricity and toilet facilities.