Parkersburg Utility Board Manager Eric Bennett, left, speaks during a board meeting Tuesday morning as Mayor Tom Joyce, chairman, listens. (Photo by Evan Bevins)

PARKERSBURG — The Parkersburg Utility Board approved a 2023-24 budget Tuesday, which includes a 4.2% cost-of-living adjustment for employees and more than $28 million in capital expenditures, most of which is covered by grant, loan and other funding.

The board received the draft budget at its May 9 meeting and voted 4-0 to approve it Tuesday. The board is short one member after Bob Wright stepped down last month; a replacement has not been appointed.

The $28,184,800 capital outlay includes $13 million to install sewer interceptors to replace pumping stations, to be funded with a state loan and grant; $5.5 million for a pair of sewer extensions in the Marrtown area, from federal grants; $2.9 million for the ongoing water system improvements, paid for with a state Drinking Water Treatment Revolving Fund loan and American Rescue Plan Act money from the City of Parkersburg; and $2.3 million for the ongoing improvement project at the wastewater treatment plant, funded from a West Virginia Water Development Authority Economic Enhancement Grant and PUB reserves.

A budget memo provided to board members notes that inflation has caused routine material and inventory costs to rise. The operation and maintenance budget for the upcoming fiscal year, which begins July 1, is nearly $700,000 — or 7.41% — higher than this year’s budget.

The utility usually offers raises in line with the annual Social Security cost-of-living adjustment, which this year was 8.7%. But this year, Bennett said, “the city gave a 4.2 (% raise), so that’s what we gave.”

Parkersburg Utility Board Comptroller Erin Hall answers a question during discussion of the utility’s budget at a board meeting Tuesday. (Photo by Evan Bevins)

The utility anticipates an additional $150,000 in water revenue as the second phase of a three-step water rate increase to help pay for the system improvements goes into effect.

The memo notes there is no sewer rate increase in the budget but one “will be inevitable in the near future … to responsibly fund increases in routine expenses, planned capital projects and debt service.”

The board voted 4-0 to approve an engineering agreement with Strand Associates to develop a long-term control plan to deal with overflows of sewers during wet weather events. The cost is not to exceed $321,000.

Utility Manager Eric Bennett said the plan is required after the West Virginia Department of Environmental Protection designated 14 of the utility’s outfalls as part of a combined sewer system rather than separate sanitary sewer.

Federal rules call for sanitary overflows to be completely eliminated, which utility officials and federal regulators recognize as nearly impossible. The combined designation recognizes the infiltration of outside water, and utilities are expected to make efforts to reduce overflows. But that requires a new long-term plan, which Strand will prepare.

After a closed executive session, the board voted 4-0 to authorize Bennett to negotiate on the purchase of land for the planned installation of a granular-activated carbon filtration system to remove C8 from the utility’s drinking water. The cost is not to exceed $205,000. Bennett said the property is near the water treatment plant but declined to reveal the exact location, citing the ongoing negotiations.