Reading the article in this paper recently of the concern of Kraft Foods in Woburn which is a very large water customer in our system , I noticed remarks which I have been moved to state that it is not a concern and may even be a huge blessing to the remaining citizens. I am, below, going to state some facts which I do fully realize that the Selectmen, Finance Board, and even the Town Administrator have no solid handle on.
Stoneham is part of over 60 cities and towns which receive Water directly from the MWRA. Each year our town receives a bill based upon the 'LAST YEAR' and not the last three years as cited in the Independent article last week. Anyone who wishes to check this fact can simply go to the MWRA website which is nicely done with clarity.
Over the last many years, the amount of water our town has been receiving is approximately 1 Billion Gallons including the Kraft Food usage which is approximately 360 million gallons a year or a little less from year to year.
The Bill from the MWRA is billed by Million Gallons and the price for each million is approximately $ 3,200. The bill from the MWRA is entitled the 'Wholesale Cost' because it is not the Final Bill to us as our Town has by choice in some cases added a few Million to that which is , by my mind is not packed in cement as you shall read in this letter.
The Town for this coming year ladies and gentlemen have planned a budget from the MWRA for $ 3,492, 164 for the estimated Billion Gallons expected based on the " Last Years' usage from all the Meters.
On top of the MWRA bill, we the ratepayers will be liable for this enumerated list below which shall bring the Wholesale Rate up to an amount of $ 5,323,064 which is very close to an additional $ 2 million dollars .
These 2 million dollars ( which I feel is variable in many cases as 'guesswork') are made up of :1.- $ 552,503 for personnel who are said to work 'only' on the Water Services in Town.2.- $ 213,650 for Operating Costs3.- $ 81,364 for Health Insurance of Active Personell4.- $ 11,021 for Health Insurance of Retired Personell5.- $ 273,636 for Debt Service ( which perhaps could be redone for lower interest) ?6.- $ 400,000 for the regular Annual Town Meeting to replace pipes each year . We have approximately 80 miles of pipe. I feel a committee should be assigned to 'Cost Review' all segments of the Checks written against this account . I feel there is some 'looseness' around this account. We'll hopefully see. 7.- $ 197,684 for employee Pension Plans8.- $ 12,088 for Workers Compensatoin9.- $ 7,126 for FICA/MEDICARE10.- $ 763 for Life Insurance11.- $ 31,039 for Property and Liability Insurance12.- $ 11,489 for Accounting 13.-$ 2,684 for Annual Audit/OPEB Study14.-$ 17,539 for Treasurer15.- $ 3,556 for Postage16.- $ 14,767 for MIS/ Data Processing
There you have the 'Additions' to the MWRA Water Bill . Now we have to look at what the Town of Stoneham Water bill would be without Kraft Foods and what effect it would have on us all.
We see the total bills of our Town for FY 15 will be approximately $ 5,323,064. If Kraft Foods was not in the budget we would not have their approximately $ 1.2 million but rather a much lower one of about $ 4 Million Dollars. As far as the MWRA bill coming to us , it would not be the mentioned $ 3,492, 164 but rather approximately $ 1 million less which makes our Stoneham bill $ 2,492,164.
Here lies the Major Point which should make all this Concern much less. The Stoneham loaded costs are the same without Kraft or with them. We still have to pay for the Sixteen (16) Stoneham allocations of some $ 2 Million dollars . Also notice now that the MWRA bills and the Stoneham loaded costs are now about 50-50 !...But I do feel that any 'loss' so called from Kraft Foods which is about $ 200,000 profit can be easily made up in areas of these costs and also what I am going to mention next.
Last year we received 1,077,000 Billion gallons of water from the MWRA. When that water came, its use was for the community residences, government, and businesses . The more of it that gets to go through our meters, the more money we receive. From the reports I have received from the State , it shows we only had a Metered Use of 892 Million Gallons with 176 Million 'Unaccounted for' which is 16% of our total water supply. And if you take away the Kraft Food Use, our ' Unaccounted for water is up into the high 20's which would be or now 'is' a great concern to the Authorities. If we could 'find' where this water is we would not have to get billed for it .
This Unaccounted for water is 176 X $ 3200 or about $ 90,000 plus or minus which could replace a major part of the Kraft Foods 'profit'.
In the reports it states that 50 per cent of our use is Residential. 30 per cent is Industrial ( mostly Kraft ) . Our Public Works has stated our 'Government ' only uses a tiny 10 million gallons for billing. That figure to me sounds outrageous in that all of our athletic programs with showers, all the fields, golf courses, and other uses and total only 1 per cent of our water ?....We should also question if these golf courses, and fields are being billed with an 'Outside Meter' which Mr. Grover is fighting to prevent.
Ladies and Gentlemen: I'd hope you read my passages today. They are official with no supposition with many areas open to flexibility and cost savings. There is to me no worries at all about Kraft Foods leaving and there is also no worries about you all attaching an Outside Water Meter for the only Four months we need them. A majority of Cities and Towns in the MWRA system have them . 31 have them against about 27 who do not.
Thank you for your attention in these matters.
Frank Pignone :Former Selectman and Water and Sewer Board Chairman2 Gigante DriveStoneham, Mass.
This post was contributed by a community member. The views expressed here are the author's own.
The views expressed in this post are the author's own. Want to post on Patch?
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