Amador County – The Amador Water Agency board of directors discussed charging interest on interagency loans earlier this month, and sent the issue to a committee to be discussed in early February. The discussion focused on an impending rate increase in the Central Amador Water Project, which will be subject of a “brainstorming meeting Monday to look at possible alternatives to a “Gravity Supply Line” pipeline in the Upcountry. It would replace electrical pumps feeding the Buckhorn plant, serving 4,020 parcels in Central Amador. Board President Bill Condrashoff said he was worried about the low percentage on a long term loan of 30 years. He said he did not believe other customers were subsidizing the CAWP, but the agency has “had some issues with money loaned interest free.” On board direction, staff is in the process of trying to formalize a loan with interest. He said the Amador Water System is loaning money to the CAWP system, and it’s “been an unofficial loan until now,” loaned with no interest. Central Amador Water Project, in rough numbers, he said, is about $800,000 in the red in its retail division, while its wholesale division has borrowed $930,000 to finance studies, engineering and other work on the Gravity Supply Line. He said its retail is in the hole because AWA hasn’t raised rates since 2006. The AWA board sent the issue to the Budget & Finance Committee, made up of Condrashoff and District 3 Director Don Cooper, which will discuss the topic February 3rd. Condrashoff said discussions will look at loan terms, interest rates, caps and payoff terms, and “if money becomes needed, it needs to be very liquid,” so that it can go back to its source system in an emergency. Cooper said “the economy has changed from the days of 5 percent” interest on loans. Condrashoff said the “agency could potentially do better for a long-term loan,” and the “indexed fund” loan is “at about 1 percent right now” in a “very liquid fund.” He asked if it was fair to the loaning system to loan at such a low rate, in the long-term loan of 30 years. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it. -
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Amador County – The Amador Water Agency board of directors discussed charging interest on interagency loans earlier this month, and sent the issue to a committee to be discussed in early February. The discussion focused on an impending rate increase in the Central Amador Water Project, which will be subject of a “brainstorming meeting Monday to look at possible alternatives to a “Gravity Supply Line” pipeline in the Upcountry. It would replace electrical pumps feeding the Buckhorn plant, serving 4,020 parcels in Central Amador. Board President Bill Condrashoff said he was worried about the low percentage on a long term loan of 30 years. He said he did not believe other customers were subsidizing the CAWP, but the agency has “had some issues with money loaned interest free.” On board direction, staff is in the process of trying to formalize a loan with interest. He said the Amador Water System is loaning money to the CAWP system, and it’s “been an unofficial loan until now,” loaned with no interest. Central Amador Water Project, in rough numbers, he said, is about $800,000 in the red in its retail division, while its wholesale division has borrowed $930,000 to finance studies, engineering and other work on the Gravity Supply Line. He said its retail is in the hole because AWA hasn’t raised rates since 2006. The AWA board sent the issue to the Budget & Finance Committee, made up of Condrashoff and District 3 Director Don Cooper, which will discuss the topic February 3rd. Condrashoff said discussions will look at loan terms, interest rates, caps and payoff terms, and “if money becomes needed, it needs to be very liquid,” so that it can go back to its source system in an emergency. Cooper said “the economy has changed from the days of 5 percent” interest on loans. Condrashoff said the “agency could potentially do better for a long-term loan,” and the “indexed fund” loan is “at about 1 percent right now” in a “very liquid fund.” He asked if it was fair to the loaning system to loan at such a low rate, in the long-term loan of 30 years. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
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