Amador County – The Amador Water Agency board of directors authorized staff to prepare paperwork for a “bridge loan” from Amador County to correct agency cash flow problems and shuffle funds to make a $1 million bond payment in May. The bond finances the Amador Transmission Pipeline, and the loan would help pay “sunk costs” of $1,050,000 spent on the Gravity Supply Line, freeing up other funds to make the bond payment. Finance Manager Mike Lee recommended the agency seek a 30-year loan for $1.25 million from the Amador County “Water Development Fund.” He said the loan would pay Central Amador Water Project’s “GSL sunk costs as well as costs to complete the Water Right application and plant expansion.” As of Thursday morning, the agency had $800,000 in cash reserve, Lee said, and “on May 15th, I have to send $1 million to the Bank of New York,” the bond payment. Lee said the money spent on the GSL “has been borrowed from other systems.” He said the agency spent it “with the intention of paying ourselves back” with a USDA grant. AWA President Bill Condrashoff said the board was “setting ourselves up for a big fall if we don’t get the USDA grant and don’t get the rate increase” in CAWP. He said they should tighten their belts instead of just putting “a Bandaid on it,” because it will “not get better.” Director Terence Moore said he could not believe anyone on the board would say they should take no action, “throw it to the wind and hope we have enough money to get by.” Moore said: “I am not considering letting this agency go under from lack of action. It’s malfeasance of the board.” Moore made a motion to seek a 30-year loan of $1.25 million, and “draw down money necessary.” He said community input supported the loan and rate increase. Vice President Debbie Dunn said “when do we recover?” Lee said recovery could begin in June, when operating expenses typically are less than operating revenues. Dunn motioned to direct staff to seek a “bridge loan” from the county, to be repaid by the end of this year, with the amount of the loan to be recommended by staff. The board approved the motion 4-1 with Moore against. Dunn said she was not worried about getting a loan extension from Amador County Supervisors, who have given a 1-and-a-half year extension on a loan to the Jackson Valley Irrigation District. Lee said they likely would need a loan of $400,000 to $700,000, and a May 13th quarterly meeting will give a clear indication of the amount needed. 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 authorized staff to prepare paperwork for a “bridge loan” from Amador County to correct agency cash flow problems and shuffle funds to make a $1 million bond payment in May. The bond finances the Amador Transmission Pipeline, and the loan would help pay “sunk costs” of $1,050,000 spent on the Gravity Supply Line, freeing up other funds to make the bond payment. Finance Manager Mike Lee recommended the agency seek a 30-year loan for $1.25 million from the Amador County “Water Development Fund.” He said the loan would pay Central Amador Water Project’s “GSL sunk costs as well as costs to complete the Water Right application and plant expansion.” As of Thursday morning, the agency had $800,000 in cash reserve, Lee said, and “on May 15th, I have to send $1 million to the Bank of New York,” the bond payment. Lee said the money spent on the GSL “has been borrowed from other systems.” He said the agency spent it “with the intention of paying ourselves back” with a USDA grant. AWA President Bill Condrashoff said the board was “setting ourselves up for a big fall if we don’t get the USDA grant and don’t get the rate increase” in CAWP. He said they should tighten their belts instead of just putting “a Bandaid on it,” because it will “not get better.” Director Terence Moore said he could not believe anyone on the board would say they should take no action, “throw it to the wind and hope we have enough money to get by.” Moore said: “I am not considering letting this agency go under from lack of action. It’s malfeasance of the board.” Moore made a motion to seek a 30-year loan of $1.25 million, and “draw down money necessary.” He said community input supported the loan and rate increase. Vice President Debbie Dunn said “when do we recover?” Lee said recovery could begin in June, when operating expenses typically are less than operating revenues. Dunn motioned to direct staff to seek a “bridge loan” from the county, to be repaid by the end of this year, with the amount of the loan to be recommended by staff. The board approved the motion 4-1 with Moore against. Dunn said she was not worried about getting a loan extension from Amador County Supervisors, who have given a 1-and-a-half year extension on a loan to the Jackson Valley Irrigation District. Lee said they likely would need a loan of $400,000 to $700,000, and a May 13th quarterly meeting will give a clear indication of the amount needed. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
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