10/25/2023
Did you Know Fact #4 - Shared Resources Means Cost Savings
A vote "YES" means:
-A merger of utility and city resources, but with separate asset tracking and accounting comparable to what the city is doing with its wastewater/ sewer operations
-Cost savings to North Branch customers and the city (procurement, maintenance, operations etc.) via shared staffing
-Strategic infrastructure planning and investment
-Integration with city development planning to ensure responsible growth of infrastructure
A vote "NO" means:
-Disjointed decision making- water owned by the commission and sewer being owned and managed by the city
-Public Works will need to hire additional staff to offset the services being provided to the utility, we looked at what it would cost for the utility to bring these roles and responsibilities back in house rather than try to compensate the city for the value of the services it is providing. Those estimated costs include salaries and benefits for full time utility manager, financial management services, additional water staff for 24/7 on call coverage (extra staff is needed as there are only two credential holding water employees at this time), a generator operator (might be a duty for which the general manager is qualified to fill)
-In addition, the utility would be responsible for rent on the city owned buildings and other fees in lieu of property taxes, office supplies, IT management, auditing and consulting services, legal services, etc. The annual salaries of the positions referenced above without including on-call or overtime based on current pay scales are as follows:
general manager - $124,800
Water operators (x2) - $169,436
Accountant (finance manager) - $78,000
-These positions alone with benefits would result in increased costs to the utility approximately $465,295 (including 25% for payroll taxes and employee benefits). That number does not include other office related costs, generation related staffing, etc. So the $400,000 is a very low estimate, but one that shows how critical it is for a sustainable water operation, t0 merge that operation with the city for elimination of duplication of efforts, shared services, including shared on-call 24/7 coverage, generator monitoring 24/7, etc.