Limestone County Water and Sewer Authority employees can look forward to merit raises in 2017 for the first time in five years.

“The only problem I have with this is there are about 15 folks who have worked their tails off and will get nothing,” said Water Board Chairman Jim Moffatt.

The chairman was referring to employees who have topped out in their salary ranges. The board considered four work pay options as part of the 2017 preliminary fiscal year budget. The first option calls for a 3-percent across-the-board cost of living increase at a cost of $3,378,560 to the authority; the second option is a 3-percent merit raise for all employees who have not topped out at a cost of $3,346,856 ; the third, a 2-percent COLA at a cost of $3,347,157, and the fourth option, a 3-percent COLA and 3-percent merit raise at a cost of $3,434,472.

The authority accountant had already used the first option of a 3-percent COLA, but after discussions at the Thursday board meeting, members unanimously approved going with option No. 2. Employee salaries and benefits account for 30-to-35-percent of the authorities operating budget.

While voting for option No. 2, board member Johnny Hatchett said he would still like to see the board come back into a work session to “hash out COLA vs. merit raises.”

“We go with the merit raises, but look at a COLA that actually reflects increases in Limestone County cost of living,” said Hatchett.

He said the actual Limestone County increase probably does not come up to 3 percent.

Moffatt asked Human Resources Coordinator Ashley Wallace what a 2-percent merit plus a 1-percent COLA would be and she answered, “About the same.”

Moffatt said he would be agreeable if the board would like to discuss the COLA vs. merit raise option further in a work session and member John Farrar motioned for a work session and Ty Smith seconded the motion.

The board went on to approve the preliminary budget, but Moffatt said the budget could always be amended.

The 2017 budget calls for total operating revenues of $16,567,467; total expenses, $11,620,954; and cash flow, $1,212,971.

Other business

In other business, the water board approved the following agenda items:

• Awarded annual Water & Sewer Contract jointly to the sole bidders, Christopher Contracting, and Hawkins Groundworks. Contract engineer Alton Hethcoat said that while this is the first time for the authority to award to two companies, their bids were nearly identical in eight areas of inquiry. The companies are not being hired for any stated project, but both will be available for services throughout the year. Moffatt said having two companies to call on would help the authority when there is a backlog of jobs;

• Approved a Debt Management Policy, a Cash Reserve Policy, and an Investment Policy. Moffatt said adherence to these policies are essential for when the authority meets with Standard & Poors. He said the policies provide for some flexibility, should the authority have to draw on reserves to meet temporary fund shortages, as long as the amount transferred was replaced from revenues in the shortest time;

• Approved contracting with Cigna Health Insurance for employees. Wallace said the present health insurer Blue Cross/Blue Shield would be increasing employee premiums by 12 percent in the coming year while Cigna costs would represent a 1-percent increase. The authority currently pays $602,000 per year for employee health coverage, which will increase to $608,000;

• Accepted the 46 lots of Brown’s Crossing Phase 2; seven lots of The Ridge Phase 2; and 60 lots of Plantation Park Phase 2 into the authority’s water distribution and/or sanitary sewer systems. Brent Brown, GIS/Construction manager said the authority had accepted a total of 617 lots in fiscal 2016, double the number from 2015. He said the authority begins 2017 with 672 lots approved for construction;

• Engineer Alton Hethcoat reported on the progress of the Decatur River Crossing Project. He said drilling is underway but workmen have encountered some unforeseen rock formations, but he expects the full bore — full width of 42-to-48 inches — to be completed by Christmas. Then a 36-inch pipe will be inserted. The steel pipe is ¾ inch thick and will be trucked to the site in 40-foot sections and just two per truck load. On Nov. 18, Hethcoat will be the guest speaker at Rotary and will make a PowerPoint presentation on the project; and

• Heard an update by Construction Manager Brown that 1,000 new meters have been installed in the ground and five crews would be installing 250-300 new meters a week with an expected completion of 14 months. It was reported the new metering system has already cut water leaks from 40 percent down to 16 percent.