Friday, 23 July 2010 06:13

AWA Budget Talk Includes Public Ire, Employee Presence

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slide2-awa_budget_talk_includes_public_ire_employee_presence.pngAmador County – The Amador Water Agency board of directors discussed Thursday its budget for the coming fiscal year, which included angry public input and a heavy presence of its field employees. Agency General Manager Gene Mancebo recommended a 4 percent rate increase in the Amador Water System, along with about $200,000 in cuts to employees, and that the agency meet its AWS “debt service coverage through an updated financial plan.” He also recommended looking at “all other system financial plans to achieve financial solvency.” Mancebo said new rate increases in smaller systems would help, and the budget depended on a $5 million grant from the U.S. Department of Agriculture for the Gravity Supply Line project in the Upcountry. President Bill Condrashoff said the rate increase in AWS would not generate the $169,000 necessary, as believed by staff. He said as past rate hikes occurred the usage of water dropped, and he expected that. He also said the budget makes too many assumptions, including the USDA grant. Vice President Debbie Dunn agreed, saying that if the grant is not awarded, the agency would be stuck with repaying a $900,000 loan from the county Water Development Fund. Director Terence Moore said that budget assumptions are typical, including the GSL grant. Moore said if there is no GSL, there is going to have to be an immediate rate increase in the Central Amador Water Project, and they would also have to go back and discuss the development loan. A successful Proposition 218 protest was announced Wednesday as having stopped a rate increase in the Central Amador Water system. Martell resident Ken Berry, who helped lead the protest, delivered a profanity-laced criticism to the board, wondering how the Prop 218 protest did not also kill the Gravity Supply Line project. Berry asked the board: “Can any of you explain why the GSL isn’t dead and buried right now?” Condrashoff asked Mancebo if he thought the rate increase would fix the budget. Mancebo said “we need a rate increase. I understand how unpopular that is.” He said if the GSL grant is delayed, they would have to go to the county and renegotiate the development loan. He said he has been meeting with employee representatives and management, and “all staff is willing to shoulder some cuts, if the board is willing to support rate increases,” and “educating the people about what we are up against,” in trying to bring the agency back into financial well being. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
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