The Onset Water Department is one step closer to fixing its financial problems after two cost-cutting measures were approved by voters at a Special Meeting of the Onset Fire District.

More than 50 people attended the meeting Wednesday night at which the Water Department took steps to meet its commitment of getting revenue for the year to cover expenses for the year. The Water Department has not met the commitment for the previous three years. Officials said if that persisted for a fourth year, the state would come in and set water rates.

By passing the two items, voters ensured that water rates would not increase again this year after they were raised by $30 earlier this month.

Water Commissioner Peter Murphy said that, for the last few years, the department has taken in about $1 million in revenue. Projected revenue for this fiscal year was set at $1,329,600.

"We overshot it," he said.

"This winter, when we budget for next year, the commitment will be based on $1 million flat," added Murphy. "This meeting today, these two articles, are a series in the transition to get the budget down where it's manageable by the money we have in the bank."

He said two articles take money that is sitting in accounts that would go to free cash (an account containing unrestricted funds from operations of the previous fiscal year) at the end of the year and instead use it to lower expenses now.

Voters nearly unanimously passed two items. One cut $41,000 from the $241,000 appropriation to the Water Department's medical insurance account. The other cut $165,000 from the Other Post-Employment Benefits fund, which pays benefits to retired Water Department workers. This effectively reduced expenses to $1,123,600.

Voters defeated a proposal brought forward by resident Carol Mazzarelli that aimed to reduce the Water Department’s payroll from $337,000 to $287,000. This would have effectively eliminated the full-time laborer job that was approved at the annual district meeting in the spring.

Mazzarelli argued that the position was not needed and the measure would save the department money.

Murphy said that two laborers, two clerks and a supervisor were insufficient to meet the needs of the Department going forward and that the third laborer was needed for future projects and maintenance.

The laborer was initially hired full-time on July 28 and has been working part-time for the past two months, at the suggestion of the Prudential Committee. Murphy also said the laborer would likely sue the district if his position was eliminated.

Voters overwhelmingly defeated that item and passed two Onset Fire Department items. One was to fund the contract negotiated between the district and recently unionized Onset Fire Department full-time employees. The other was to disband the previous Fire Station Building Committee and authorize the Prudential Committee to create a new one, with the purpose of exploring options for a new firehouse.