Amador County – The Amador Water Agency board of directors in its last meeting of 2009 set a public hearing for a possible rate increase in Camanche Water District Number 7, looking to fix a “structural cash deficit.” AWA has been working with the U.S. Department of Agriculture on grant to add a water storage tank, at an estimated cost of $1.8 million. The USDA has said the California Rural Development grant depends on funding available from other partners. In a special meeting December 31st, the AWA board approved a revised financial plan for the Camanche project, and planned a February 22nd public hearing. The agency has already spent about $100,000 toward the project, and staff said those “sunk costs” likely could be reimbursed through the grant. Staff recommended rates based on revenue needs through 2012. Staff “determined that the water rates in Lake Camanche should generate about $340,000” this fiscal year “to meet financial obligations and objectives” in the “multi-year financial plan.” Staff recommended AWA adopt a 3-year plan, with 9 percent rate hikes each July 1st until 2011. The report said “in order to meet the full financial obligations of the water utility and close the operating deficit of about $618,000, it is recommended that we borrow $800,000 in fiscal year 2009-2010 and begin repayment” the following year, “which amounts to an annual payment of about $32,000.” Rate increases would repair a “structural cash deficit.” A typical residential user consuming 12 units would pay $3.40 more per month in the first year, and monthly rates would rise annually by 3-4 dollars. The last rate change in Camanche District 7 was in July 2006. Finance Manager Mike Lee said the board’s selected plan would be posted on the AWA website. Interim General Manager Gene Mancebo said AWA “will have to build a project” in Camanche District 7, because of “contact time” improvements needed in the system. Director Gary Thomas said the agency needs “to look at conservation plans in Camanche,” and he urged the board to not “lose sight of the fact that we need a conservation plan.” He said he hoped that would “get memorialized in these rates.” Director Terence Moore agreed, saying “it’s a small system, and it would be a good place to see if it would work.” Mancebo said any rate change would be subject to Proposition 218 guidelines. And he said once the agency approves a financial plan, staff would like to look back and see if it works, and if not, they can “rectify that” when they approve the project. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.