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Berlin takes look at utilities fund budget for fiscal year

BERLIN– The town’s utilities fund budget for fiscal year 2014 was discussed for the second time during a council meeting on Monday, May 5.
The utilities budget was also debated briefly during a general fund budget work session on April 21.
Public Works Director Jane Kreiter led the discussion on the water, wastewater and storm water departments, while Electric Utility Director Tim Lawrence spoke on behalf of the electric department.
An estimated 6 percent increase in spending is expected for the water department, due largely to an increase in equivalent dwelling units (EDUs) at the medical office building. A rate study done four years ago suggested 30 EDUs were sufficient, however officials expect that number to increase to a minimum of 50 EDUs. The department also discussed an increase in the contingency fund, the need to replace an outdated box truck and adding another water tower.
Wastewater spending is expected to grow by 5 percent. The proposed budget contains the last of the sewer increases the town voted to pass two years ago.
A “conservative” budget was suggested for Storm water. Upgrades on Flower, Williams and Nelson streets were discussed, although construction may be done in phases in order to keep costs down.
Smart meters and upgrades in billing software were discussed as part of the 2014 electric department budget. The town is exploring vendor options in purchasing new meters. Included in the proposed budget was $30,000 for a new audio system to be installed in the downtown area. The system would be set in town hall and could play music throughout the area during events.
The mayor and several council members also touted Berlin’s success in lowering consumer electric rates.
“I hear from so many people around here that still think we have a high electric rate,” said councilmember Troy Purnell. “We’re cheaper than Choptank; we’re cheaper than Delmarva Power, it’s more reliable and I don’t know what we need to do to get that old slime wiped off of us, but it’s just not true anymore.”
“The perception is inappropriate and it’s our responsibility to try and do something about it,” Mayor Gee Williams said.
“We spent a lot of money upgrading this plant and the staff did a lot of work to turn that around and people need to know that we have turned it around,” said councilmember Lisa Hall. “It’s a whole different power plant than, say, seven years ago.”
Councilmember Dean Burrell credited Lawrence with the sharp turnaround.
“A lot of the credit goes to the crew; I have an outstanding department,” Lawrence said.