In a recent government meeting, officials discussed significant increases in the operations budget, primarily driven by rising costs in insurance and maintenance agreements. The New York State Electric and Gas (NYSEG) has been approved for a 24% increase over three years, with a 6.6% hike in 2024 and a projected 7.3% increase in 2025, which has directly impacted the budget.

The meeting highlighted that both liability and healthcare insurance costs are also on the rise, contributing to a 7.75% overall increase in the operations budget compared to the previous year. Officials noted the necessity of including depreciation in the budget following auditor recommendations, which adds complexity to financial planning.

Maintenance agreements for essential equipment, such as microturbines and generators, are expiring, leading to anticipated costs of approximately $100,000 annually for maintenance alone. This situation underscores the need for certified personnel to handle repairs, as current staff lack the necessary expertise.

The proposed budget includes specific revenue lines, with a request of $1,233,411 to cover services for Frito Lay and the water plant, alongside a total proposed budget of $24,559,814 for sewer services. Discussions also touched on interest earnings based on a capital reserve of around $1.3 million, although the current balance is reportedly higher.

The meeting concluded with a review of various budget lines, including a fund balance of over $8.7 million, which is intended to offset depreciation and principal payments related to inter-city agreements. The officials emphasized the importance of careful financial management as they navigate these budgetary challenges.