Amador County – The Jackson City Council’s review and subsequent approval of the annual budget Monday revealed how tough economic times have affected key services, in particular the wastewater enterprise fund. “The General Fund continues to be the focus and driver behind most City services, although some other key budgetary issues are looming in the wastewater enterprise fund this fiscal year,” said City Manager Mike Daly in a report to the council. The Wastewater Fund is dependent on revenue derived from residential and commercial customers. During fiscal year 2009-10, sewer rates were increased in February and July for a cumulative total of 23 percent, yet revenues only increased 7.4 percent. Daly said “this is reflective of a higher vacancy rate for both residential and commercial customers, and lower water consumption by commercial customers whose sewer bills factor in water use.” Other factors could add significant costs for the City in the coming year, including regulatory compliance issues related to stricter water quality standards, and the implementation of a state regulated wastewater effluent discharge permit. A regulation in the City’s permit also requires an eventual reduction in the effluent discharge into Jackson Creek so that the percentage it contributes to effluent in Lake Amador is less than 5 percent. In addition, he said the City’s 25-year-old treatment plant is having trouble keeping up with demand. Daly said: “An intensive public education process will be required to explain the need for rate increases given the level of citizen interest in previous rate increases and the requirements associated with Proposition 218.” The newly-approved budget has yet to include costs associated with any of these issues or the water rights petition that will need to be circulated should the City move forward with removing effluent from Jackson Creek. In July, the City Council will consider an alternative analysis of the Wastewater Fund that includes financing options and detailed cost estimates. Jackson’s General Fund is expected to finish with a positive balance this year, and revenues are expected to exceed expenditures by $88,955. When considering the projected mid-year budget deficit of $264,000 and implemented reductions, the final deficit for fiscal year 2009-10 was reduced to $40,574. Daly said severe cuts over the last year mean the City is “in the black” for now. Story by Alex Lane This email address is being protected from spambots. You need JavaScript enabled to view it.
Thursday, 01 July 2010 06:09
Jackson Foresees Significant Costs Associated With Wastewater Fund
Written by Tom-
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Amador County – The Jackson City Council’s review and subsequent approval of the annual budget Monday revealed how tough economic times have affected key services, in particular the wastewater enterprise fund. “The General Fund continues to be the focus and driver behind most City services, although some other key budgetary issues are looming in the wastewater enterprise fund this fiscal year,” said City Manager Mike Daly in a report to the council. The Wastewater Fund is dependent on revenue derived from residential and commercial customers. During fiscal year 2009-10, sewer rates were increased in February and July for a cumulative total of 23 percent, yet revenues only increased 7.4 percent. Daly said “this is reflective of a higher vacancy rate for both residential and commercial customers, and lower water consumption by commercial customers whose sewer bills factor in water use.” Other factors could add significant costs for the City in the coming year, including regulatory compliance issues related to stricter water quality standards, and the implementation of a state regulated wastewater effluent discharge permit. A regulation in the City’s permit also requires an eventual reduction in the effluent discharge into Jackson Creek so that the percentage it contributes to effluent in Lake Amador is less than 5 percent. In addition, he said the City’s 25-year-old treatment plant is having trouble keeping up with demand. Daly said: “An intensive public education process will be required to explain the need for rate increases given the level of citizen interest in previous rate increases and the requirements associated with Proposition 218.” The newly-approved budget has yet to include costs associated with any of these issues or the water rights petition that will need to be circulated should the City move forward with removing effluent from Jackson Creek. In July, the City Council will consider an alternative analysis of the Wastewater Fund that includes financing options and detailed cost estimates. Jackson’s General Fund is expected to finish with a positive balance this year, and revenues are expected to exceed expenditures by $88,955. When considering the projected mid-year budget deficit of $264,000 and implemented reductions, the final deficit for fiscal year 2009-10 was reduced to $40,574. Daly said severe cuts over the last year mean the City is “in the black” for now. Story by Alex Lane This email address is being protected from spambots. You need JavaScript enabled to view it.
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