At its April 2 meeting, the Metropolitan Utilities District (MUD) Board of Directors rejected a proposal to fund the employee pension plan at a higher rate than recommended.
Director Mike McGowan advocated for contributing the full $13.8 million budgeted, citing concerns over market volatility and the value of maintaining a cushion. Director Tim Cavanaugh countered that the recommended $12.9 million was sufficient and praised fiscal restraint, stating, “We don’t always have to go to the budget if there’s a way we can achieve our goals without necessarily spending all the money.” The motion to contribute the higher amount failed 2-5, with the board approving the lower contribution instead.
The board approved a series of capital expenditures and contracts, including emergency replacement of a failed uninterruptible power source at the Florence Water Production Facility and a reimbursable $214,600 water main relocation project near 168 and Ida streets. The district also approved new infrastructure to connect the growing City of Gretna to MUD’s water supply, while Gretna will continue to use its own storage systems to meet peak demand. Directors also reviewed a “clean” financial audit and noted that while gas revenue had dipped from 2023 levels, it still exceeded projections. A $25 million federal grant from the Pipeline and Hazardous Materials Safety Administration is pending final revision and approval.
The board voted 6-0 to terminate an employee, with one abstention. Ten employees received wage increases following promotions, and a salary adjustment was approved for MUD President Mark Doyle, who will receive a 3.25% general raise and 5% progression increase. During legislative updates, staff noted ongoing budget concerns at the state level and highlighted a bill that could secure additional funding for lead service line replacements.
Meeting documented by Will Ramsey
Read full meeting notes here
