With one budget complete, the Boothbay Region Refuse Disposal District is already thinking about the next one. During the Oct. 11 meeting, auditor Fred Brewer reported district finances finished $36,000 in the black. Brewer met with trustees for about 35 minutes explaining the fiscal year 19 audit.

The report also included two days of activity for Giles Rubbish Service. On June 28, the district bought Giles Rubbish for $1.363 million.  Brewer explained the  audit showed a $549 loss for the two days, due to accrued interest regarding the purchase. Brewer and district officials agreed the next audit would present a better financial picture of how Giles Rubbish impacts the district’s bottom line.

“We bought it at the right time of year,” said District Manager Steve Lewis. “July, August and September is the peak season and revenues are strong. So we’ve built up the checking account and we will know better in the next couple months  how profitable the company is and whether we need to adjust rates.”

Lewis also advised keeping two sets of books for tracking the refuse district as governmental operations and Giles as a for profit operation. Lewis recommended separating the two to better show Giles is an independent entity which won’t use taxpayer funds.

As the district closes the books for FY 19, Lewis prepared trustees for the next year. In FY 19, the district budgeted $65,000 for recyclable revenue. Lewis explained the recyclable market has dried up. Lewis expects a revenue loss next year which may result in a municipal fee increase. “I can’t justify budgeting that much in revenue. China isn’t accepting it, and there is no other market for cardboard, mixed paper and newsprint. In the past three  months, the district has only received $5,300 in recyclable revenue.

Lewis also advised trustees about repairs to the grinder. The machine’s turn wheel broke and a New Hampshire shop replaced the motor and did extensive work costing $26,000. The grinder is about  12 years old and cost over $900,000, according to Lewis. “It won’t be too many more years and we may have to replace it. As it gets older, it will need more repairs, and I want to warn you now that a replacement may be needed in five to seven years,” he said.

In other action, Lewis reported another delay in the opening of the Fiberight plant in Hampden. Last year, the district joined several other former Municipal Review Committee members in leaving Penobscot Energy Recovery Company (PERC) and joining Fiberight, a Maryland-based clean energy technology company, to process their solid waste.

But the new facility’s opening has been plagued by delays. Lewis had indicated a delay would result in the plant opening this fall, but the plant has experienced another setback. Lewis now expects the plant would likely open next spring.

The trustees meet next at 5 p.m. Thursday, Nov. 8 in the district business office.