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APPROPRIATION COMMITTEE REPORT TO THE MARCH 2013 ATM
<br /> 10(s) Concord Avenue Sidewalk Construction and Easements XI-7: To fund the construction of side-
<br /> walks along Concord Ave from Spring Street to Waltham Street, a quite challenging stretch of road from
<br /> a topography perspective.
<br /> The Committee recommends approval of this request (9-0), except 10(h) which the Committee rec-
<br /> ommends for approval(8-0-1).
<br /> Article 11: Appropriate for Funds Requested Funding Committee
<br /> Water System Source Recommendation
<br /> Improvements $200,000 Water EF(Debt)
<br /> $700,000 Water Retained Approve (9-0)
<br /> $900,000 Earnings
<br /> This Article addresses proposed capital expenditures to be made during FY2014 as part of a continuing
<br /> program to upgrade and keep current the assets of the Water Enterprise Fund. For general background on
<br /> the enterprise funds, and the relationship between the budget process and the water rate setting process,
<br /> please see Appendix B and the discussion under Article 5.
<br /> A total of$900,000 is requested this year to replace unlined or inadequate water mains and deteriorated
<br /> service connections and to eliminate dead ends in water mains. The details of the projects, including the
<br /> locations where work is expected to be done, can be found in the Brown Book (p. XI-10). Two additional
<br /> capital appropriations will be requested under Article 10 (Municipal Capital): $145,500 in water fund
<br /> debt to cover half the cost to replace a Ford F450 pickup truck with a utility body and a backhoe used by
<br /> the water and sewer divisions that have reached their end of life, see Article 10(1); and $50,000 from the
<br /> water fund's retained earnings to fund half the cost of an ongoing hydrant replacement program shared
<br /> 50-50 with the General Fund,see Article 10(n).
<br /> The costs of this year's system improvements will be funded by a combination of borrowing ($200,000)
<br /> and retained earnings of the Water Enterprise Fund ($700,000). The resulting debt service costs for the
<br /> portion borrowed will be borne by the operating budget for the Water Enterprise Fund in FY2014 and in
<br /> future years until the debt is retired (see Brown Book, p. XI-10, Table II), and will be included each year
<br /> as a component of the water rates.
<br /> Capital appropriations for similar purposes have been made in most years (except for FY2006 and
<br /> FY2012, when engineering studies were not ready), as illustrated in the table below. The goal is to keep
<br /> the system current so the Town can assure dependable high water quality, pressure, and volume for do-
<br /> mestic needs, commercial needs, and fire protection as well as minimization of water main breaks.
<br /> Water Capital Improvements History
<br /> Fiscal Year Purpose Cash Borrowing Total
<br /> 2003 Water Dist. Improvements $340,000 $560,000 $900,000
<br /> 2004 Water Dist. Improvements $400,000 $500,000 $900,000
<br /> 2005 Water Dist. Improvements $400,000 $450,000 $850,000
<br /> 2006 None $0 $0 $0
<br /> 2007 Water Dist. Improvements $0 $900,000
<br /> Water Meters $0 $250,000 $1,150,000
<br /> 2008 Water Dist. Improvements $0 $1,800,000 $1,800,000
<br /> 2009 Water Dist. Improvements $0 $1,800,000 $1,800,000
<br /> 2010 Water Dist. Improvements $0 $900,000
<br /> Equipment $0 $119,000 $1,019,000
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