"Proposed" Budget for FY 2005 – 2006 Commentary

The savings that we are anticipating in the 2004/2005 fiscal year will be used to help fund the 2005 – 2006 FY budget.  Part of the savings will go to help pay the Berglund property loan, and the remainder will be used to restore our reserve in the savings account.

When we present a proposed budget to the District we are not able to increase the budget at the meeting.   Consequently, the budget as presented includes some items which might be desirable but are not essential, and the District may vote to reduce or drop some items in the budget. Items in the proposed budget which the board recommends for close review are marked with a “?” in the left column.

The District budget as proposed includes a number of increases which would produce tax increases of 21.8% for Hebron and 45.0% for Lebanon.  So that you might have a better understanding of the cause for these increases, the more significant increases as well as items which could produce savings are reviewed below:

Lake Expenses:

• 7b) Use State trooper one weekend a month in place of the private security Co.:  $300  This proposal is offered because some residents have requested a stronger security presence.  By trying this just one weekend a month, the District can decide in the future if we should use a trooper for all of our security needs.  The cost for the State trooper is $35/hr vs. $31/hr for the private security service.

• 8-Signs and Bulletin Boards: $320 increase for 4 tasks as listed in budget

• 12-Aquatic plant management / Lake Scientist – 2 visits and discussion;  $500.  This expense has been broken out of item 13 to give it greater visibility.

• 13-Weed Control - possible hydro raking of south east cove.  $700 increase over last years budget.  The board recommends that this be postponed at least one year.  Our lake scientist has indicated that there may be signs of improvement in the lake and he would like to track any changes for another year.  If we hydro rake, there will be a large disturbance to the bottom and additional nutrients will be released into the lake.  If hydro raking is dropped, it could save up to $10,000 in the budget.

• 19-Beach Maintenance - cut brush, weed whack, dump fees, sand replacement; $1,300 increase from last year budget.  Much of this cost will be for the Lollipop area which is starting to get overgrown with brush.

• 21-Lake Passes Printing and Postage; $840 increase.  In the past postage for lake passes ($690)was covered in the item 2-Newsletter budget.  It is now part of the lake pass budget.  In addition, printing costs have gone up ($150).

• 23-Gasoline for lawn equipment; $300.  This has been broken out as new item because gasoline expenses in the past have been hard to share between the different uses/budgeted items.

• 29-Main Dam Maintenance; $1,500.  Heavy brush and trees have been taken down per DEP requirements.  We must also maintain the dam surfaces and this is cheaper to do by mowing and weed whacking than it is to wait until heavy brush grows back. 

District Budget

• Legal notices – Broadcaster; potential savings of $400.  The district has voted in the past to use both the Rivereast News Bulletin, and the Norwich Bulletin.  If we use the Broadcaster only, then we will save $400.

• Office Expenses – postage, copying; $200 increase.  The proposed budget is $600 which is less than the 04/05 actual expenses of nearly $800.

• Web Site - $100.  We are very fortunate to have the help of Frena Hokans and Mike Smith in the creation of a great website (Amstonlake.org).  Frena is donating her time and the expense relates to the cost of posting the web site.

• Records Storage and Safe Deposit Box, $665.  The added cost is because our old District records have been put in storage at Gold-i-Locks facility in Colchester, to meet state requirements.

• General Liability & E&O, $691.  This reflects a 5% increase in premium.

• Audit Fees; $500.  The State has increased the audit requirements and this reflects the additional work.

• Annual software license and support, and Print, postage, mail tax bills, rate books; $300.  The actual cost for these items from QDS was $90 higher than the 04/05 budget.  Consequently, the real increase in cost for these two items in 05/06 is $210.  This price increase was negotiated down from a $700 increase that they initially proposed.

• Berglund Lot loan; $4,880.  We have been paying the annual $9,880 payment from savings in the past.  Our savings is depleted and consequently $5,000 will come from savings this year with the balance, $4,880, from tax revenue.

• Capital Nonrecurring Expense (Dam); The budget for 05/06 has not changed from 04/05.  However, there is a comment in the budget which authorizes the District to borrow up to $24,000 for the dam repair.  The new dam repair estimate is $38,000 which includes installation of an additional larger capacity drain.  The existing drain valve is old and has had problems in the past and has insufficient drain capability.  The difference between the $38,000 estimated cost and $24,000 loan will be made up by using reserve in the Dam fund.

• Taxes to Hebron and Lebanon, $2,700.  Actual taxes for 04/05 were $1,990 more than the budget.  The new tax budget assumes an 8% increase.

• ALIA Support; $1,400 increase.  The breakdown of the requested support ($3,400) is: propane gas $1,500, driveway stones (phase 2), $300, two picnic tables $800, men’s bathroom $500, resurface clubhouse floor $300.

• Plowing for ALIA Clubhouse; $300.  This has been done gratis in the past, but there is now a charge of $30 per storm.

• Storage shed; $5,000.  The district equipment, tractor, rake, etc. are presently kept at Reggie Miles home.  As he will be retiring from this position next year, we should provide a storage area for the equipment, and not wait to the last minute.

• Lebanon Snow removal (3 yr contract); $1,000 increase.  After competitive bidding the 3 year contract for plowing during the months of November through March was awarded to BSA at an annual cost of $5,000.  The additional $1,000 (ie budget is $6,000) is for an additional plowing if needed (ie in April) and for sanding as required.

• Lebanon road maintenance; $14,500 increase.  BSA has reported that the roads are in a rapidly deteriorating condition (much worse than usual).  Drain pipes need to be installed to reduce erosion.  The many potholes are caused by underlying rocks of large size.  Simple application of processed gravel will not last unless the road is first dug up to remove the rocks.  The initial work is estimated to cost $15,000 with a follow up regrading in late fall ($1,500) so that the road will be level in preparation for snow plowing.

The Board of Directors would truly like to see a much smaller increase in taxes than is presented in the proposed budget.  As an indication of how the taxes could be affected, if we drop funding for: hydro raking (-$10,000) and the use of a State trooper (part time) for security (-$300), and we approve use of Broadcaster as sole news bulletin to give public notices (-$400), the % increase for Hebron would change from 21.8% to 11.7%, and Lebanon would change from 45.0% to 36.1%.

Respectfully submitted,

David Arnold

Treasurer

Lake Expenses    (? items needing District review)		2004-2005 Budget	Prop.  2005-2006 Budget	Chg	Comments
1-Office Supplies - stamps, paper, printer cartridges, copies		$200	$240	$40
2-Newsletters - (3) printing and stamps		$2,210	$1,850	-$360
3-Volunteer Refreshments		$200	$200	$0
4-Sanitation - Portapotties - 2 units, 5/15 to 9/15 = 4 months @ $180		$720	$720	$0
5-Gate Monitoring -  June 1 - Sept 7		$1,400	$1,400	$0
7-Security Services:  Wkends/holidays 7/1/05 to 9/5/05 & 5/28/06 to 6/30/06	subtot.	$8,736	8980	$244
7c) Use private security service only	$8,680
7b) Use State trooper 1 wkend a mo. in place of private security service	$300				incr'd cost
8-Signs and Bulletin Boards		$280	$600	$320
a) Remove old sign at Main Beach by the side of Deepwood Dr.
b) Remove old bulletin boards at main & Lollipop beaches & install
new larger boards with rain cover to protect bulletins
c) Repair lake use rules signs at beaches and right-of-ways
d) Install mulch & landscape cloth at Amston Lake sign by Duck Pond
9-Memberships - CT Fed.of Lakes ($50), N. American Lake Mgrs ($175)		$150	$225	$75
10-Water Quality Mgmt	subtot.	$3,310	$3,205	-$105
a) 9 visits to sample site produces 36 samples.  Lab fee $15 / sample	$540
b) 3 stream samples during hvy rain events produces 9 samples x $15	$135
c) 3 lake perimeter E-coli samples during hvy rain events (Leb.) 18 x $20	$360
d) 2 lake inspections and consultations by Lake Scientist	$500
e) 3 rain event storm drain samp. (Leb.) 6 samples x 3 events = 36 x $15	$270
f) Year end analysis and report by Lake Scientist	$1,400
11- E-coli testing at Main and Lollipop beaches	subtot.	$1,560	$1,620	$60
a) 6/1/06 to 9/1/06 = 12 wks x 6 samples ea. = 72 x $20	$1,440
b) Possible retesting due to elevated E-coli counts   9 samples  x $20	$180
12-Aquatic plant management / Lake Scientist - 2 visits & discussion			$500	$500
13-Weed Control - possible hydro raking of South East Cove 2006		$9,300	$10,000	$700	defer ?
15-ROW Maintenance - cut brush, weed whack, dump fees, sand repl'mt		$2,825	$2,000	-$825
16-Duck Pond Maintenance - weed whack, mow, cut brush, beaver			$700	$700
fence repair, remove beaver dam debris from inside spillway
and the culvert under Deepwood, install fencing at top of dam
17-Boat dock Maintenance			$150	$150
19-Beach maintenance - cut brush, weed whack, dump fees, york rake		$200	$1,500	$1,300	Incl. Lollipop
21-Lake Passes Printing - boat, car, and personal	subtot.	$2,100	$2,940	$840
a) Printing	$2,250
b) Mailings - postage, envelopes and flyers	$690			$0
23-Gasoline for lawn equipment			$300	$300
28-Mower equipment - tire chains & trailer		$425		-$425
29-Main Dam Maintenance			$1,500	$1,500	Dam expen.
a) Weed and brush removal, wet side of dam					in 04/05 were
b) Brush cut on dry side of dam 3 times yearly					were capital
c) Mow and weed whack dry side swail area near parking area					impr'mts
d) Remove graffiti and repaint					pd by Dam
e) York rake and seed top of dam area where trees were removed					fund
f) Install guard over outlet valve and T fitting
g) Spread existing piles of mulch around newly placed boulders
Lake Management Services (includes additional insurance req'mts)		$15,500	$16,870	$1,370	Act. In 04/05
Total - Lake Expenses:		$49,116	$55,500	$6,384	was $16,870

Amston Lake District 2004-2005
Lake Expenses			March 31, 2005
Category	YTD Amt	Budget	Projected Amt	Comments
1-Office supplies	$204.43	$200.00	$240.00
2-News letters	$657.80	$2,210.00	$2,210.00
3-Volunteer refreshments	$25.00	$200.00	$200.00
4-Sanitation	$494.50	$720.00	$720.00
5-Gate monitoring	$976.91	$1,400.00	$1,400.00
7-Security services	$4,960.00	$8,736.00	$8,736.00
8-Signage	$0.00	$280.00	$280.00
9-Memberships	$0.00	$150.00	$150.00
10-Water quality mgmt	$1,500.00	$3,310.00	$3,310.00
11-Ecoli testing	$600.00	$1,560.00	$1,560.00
13-Aquatic plant control	$894.86	$9,300.00	$1,900.00
15-ROW mgmt & maintenance	$26.84	$2,825.00	$2,825.00
17-Dock system & boat rack maint.	$116.79	$0.00	$160.00
18-Landscaping & maintenance	$11.95	$0.00	$12.00
19-Tree & brush cutting	$15.07	$200.00	$200.00
21-Lake passes