The Ellijay-Gilmer County Water and Sewerage Board of Directors approved adjusting the water authority’s 2021-22 budget to compensate for rising costs in several areas when meeting Monday, March 21.
Board members Mike Gibbs, Hubert Parker, Tony Whitaker and Don Callihan approved a $75,000 budget increase, most of which will cover increasing prices of chemicals, energy and gas.
Gary McVey, water authority director, said there’s been significant price increases in the cost of certain chemicals the last three months, some as much as 12 percent. Delivery costs for chemicals are also up, he noted.
The water authority’s previous $70,000 chemical budget was raised to $113,000.
“The chemical companies used to go up a fraction every January. In 14 years, we’ve never had to exceed $70,000 on a chemical budget. We’re seeing some pretty significant increases, and it’s not only affecting the water plant, but the wastewater plant, as well,” McVey said.
A $2,000 increase, from $4,000 to $6,000, was approved to cover higher diesel prices. Much of that increase is because generators at the water plant and high service pump building had to be filled with diesel after running during recent power outages, McVey noted.
The water authority’s energy budget was raised from $200,000 to $220,000 due to higher energy costs.
“It seems like everything we do to reduce our energy costs will reduce it for a little while, then the price goes up, and it goes right back to where it was at,” McVey said.
Board members also added an additional $10,000 to a $2,000 line item to cover repairs on two of the water authority’s Ford F-150 trucks.
McVey said the authority’s department heads have been good about sticking to their budgets, and he and now-retired water authority controller Bonnie Dalrymple have been careful to keep budget increases very minimal over the years. It’s uncertain if the departments will be able to stick to that same plan for the next fiscal year if costs continue to rise, he noted.
“These are unusual times,” said Whitaker.
McVey said the $75,000 budget adjustment will be offset somewhat by water revenue, which is 3 percent over what had been anticipated.
Board members also approved a $462,149 purchase of 12,114 feet of 12-inch ductile iron pipe from Electrosteel USA and an $88,544 purchase from Hays Supply, of Acworth, for materials other than pipe.
The materials will be used in an upcoming Old Highway 5 South water system project, in which 12-inch pipe will be used to replace 8-inch pipe. The pipe is expected to be delivered sometime in late summer, McVey noted.