(4/25) CFO Linda Joyce and Director of Public Works/Water Superintendent Harold Lawson presented the preliminary budget for the water fund and wastewater fund, respectively, at the April 8 Town meeting. The Town Council will approve all budgets for FY-26 after all department budgets are presented.
Lawson presented the water fund capital and Capital Improvement Plan, totaling $236,000 for the next fiscal year. Lawson and his department would like to replenish their inventory of water meters and to purchase a smaller Bob Cat excavator for more intricate projects. The Water Department would like to use capital funds for the North Center Street Water Main Project, as well as lead service line inventory. For the latter, the Department would like to continue working with Arro to assist with documenting of lead lines in Thurmont, notifying residents and applying for grants. "The difficult thing is we have to determine what every service line is within a certain date range," Lawson said. "Any one built before 1972 we need to identify the pipe material, and if it’s galvanized, it’s going to have to be replaced."
Lawson is also asking for replacement parts for two wells that are reaching the end of their life expectancy, in addition to some funding to replace aging fire hydrants, including the labor to replace them. When Commissioner Marty Burns asked about doing the work in-house, Lawson said, "We would save on the labor costs, but one of the hydrants we have picked out is in a very difficult spot. You need a company that’s got some guys to do the flagging and the concrete work and everything. It’s just a matter of time to do it."
Joyce introduced the Water Fund budget, with an expected revenue of $1,204,874 and expected expenses of $912,585. With this preliminary budget, the Town expects a surplus of $292,290 from the water fund alone.
The Town expects $55,000 in earned interest, a $15,000 decrease from last year’s expected budget due to a reduction in ARPA funds. Commissioner Marty Burns clarified with Joyce that the interest revenue would decrease even more the following year as the ARPA funds are spent. Joyce explained that all ARPA funds must be spent by December 31, 2026, which will be mid-fiscal year ending in 2027.
Joyce budgeted for 15 new units’ connection fees after budgeting for 20 last year where the Town only received six. "I don’t see us getting another 14 between now and the end of the [fiscal] year," she said. The preliminary budget includes a decrease in metered water revenue because of Joyce’s research into data from previous years. "What we’re seeing across the board, in the wastewater and the water, is a reduced usage," she said. The Town is expected to come in under budget for metered water revenue in the current fiscal year, according to Joyce.
Expenses include salaries with a 3% increase for cost of living and other costs associated with Town employment. This section also accounts for Town systems, meetings, maintenance, vehicle expenses, etc. There was a decrease in lab testing costs, which Lawson explained is due to where the department is in their schedule for testing. "Every year it varies; different year, different tests," he said.
Joyce budgeted $38,000 in IT expenses in part to allocate for the Town’s new virtual information security officer. The Town will also need to buy new computers that are compatible with Windows 11 to replace those that are operating on Windows 10, which is budgeted for $20,000. However, the IT expenses are spread across all four funds, according to Joyce.
