Henke discusses water chemical prices

It just keeps going up and up and up.”

Council member Mike Henke

Members of the Stanley Finance Committee met on Wednesday, September 20 at noon to discuss recommendations on the preliminary City of Stanley’s 2024 budgets.

As a paper was handed out to the committee members from Clerk Nicole Pilgrim, council member Mike Henke explained, “When department heads submitted their budgets, these are the items that I took out. They’re big items and we don’t have money for it.”

He shared that a digester is needed for wastewater department that costs $700,000 and they would like to have some spare pumps for the lift stations. It was discussed that if a new part was needed, it could be obtained in Eau Claire, or the parts would be under warranty. He further mentioned that the digester will be needed at some point in the future. Henke told the committee that the 40-year-old forced main on Maple Street is in bad shape. Previously it had a break on it, and the flow is really reduced. He mentioned that the newer one on Eighth Avenue is clogged up.

“We may want to go and have that one run a pipe through it and try to clean it out. What’s happening is the stuff from the water plant is coming down. It’s high in manganese that’s building up in that pipe,” said Henke.

Henke and Mayor Al Haas discussed the need for a price point to know how much the project on Maple Street would cost.

“That forced main on Maple runs right down the middle of the road, doesn’t it?” asked Haas.

“I believe so,” agreed Henke. “The road probably needs work anyway.”

“Yup, the road needs to be redone,” Haas stated.

Henke remarked that water is $1 million in the red already and it was discussed to purchase a new truck. He stated it was possible to purchase one with reserves but questioned if it was prudent to purchase something to use reserves for that if would be used for five years. He wasn’t sure if it could even be done.

“I told Donnie (Goettl) let’s just not go down that trail,” Henke explained that he didn’t know the regulations in regard to that.

He said that it’s in the water budget for a rate study that would begin soon and is projected to hopefully be completed in 2025.

He continued to discuss five more items that were taken out of the budget, including $20,000 that the fire department wanted to put away but “there’s not enough in there for that.”

The library is asking for $2,000 more than the year before. Henke said that they’re getting a little less revenue from county aid which always lags behind because it looks at past usership.

In the budget for wastewater, insurance, debt services and health insurance have all increased.

Council member Mark Fitzsimmons asked if there would be money in reserve if something needed to be done with the current reed bed issue.

Henke remarked “We do have some money in reserve, but we can’t go hundreds of thousands.”

He added it would take time to get that started and likely couldn’t be in 2024.

The committee remarked that there should be less maintenance on the lift station.

Henke then shared his worries, “My concern with this budget is water doesn’t collect enough money to pay for operating. That’s the reason there is a rate study going on. We are looking at doing some work at the northwest plant. To get an update on that, usually there is grant funds available. Water needs to look like we are really poor.  This looks like they’re really poor. The poorer you are the more points you get. The higher your numbers are in the grant the better chance you get money. “

“That study is being done to update the plant and also to expand the plant,” Haas expressed. ”Right now the plant is maxed out.” 

Henke said the plant can only produce a certain amount of water. He added it can be more efficient but only produce a certain amount of water.

He informed them that chemicals are one of the biggest increases. “It just keeps going up and up and up,” Henke stated.

The rate case study which the state Public Service Commission will use to set new water rates will cost about $30,000.

As they continued to review the budget, Fitzsimmons commented that chicken permit fees are down this year.

“They still have chickens. They just don’t come pay for them,” Pilgrim stated.

Henke told the committee that a lot of money in the budget is spent on workers’ overtime wages, and he doesn’t want to “alarm people” but it raises concerns of going over budget. The committee recommended an overtime policy to submit for approval to the council to combat the wage increases from overtime hours and to help balance the budget.

Henke expressed his frustration that fire service agreements haven’t been produced with the Towns of Colburn and Wilson. Committee members stated that the fire department is not taking the initiative to obtain those agreements after discussions with the council. Henke recommended to not increase the fire department budget but keep it the same.

The finance committee voted to send the 2024 preliminary budgets to the council for further review and approval.