Amador County - On the heels of a third successful rate increase protest, this one on the CAWP Retail System, the Amador Water Agency Board of Directors has scheduled a meeting with all Water Agency employees to brainstorm ideas for both cost reductions and revenue increases at AWA. The meeting is an opportunity for the Board and Agency staff to discuss possible concepts that may ultimately improve the financial health of the Agency. The meeting will be held Tuesday, August 3 from 8:00-11:00 am in the Agency Board Room. Just like other local government entities, the Water Agency has been challenged by recent years of economic downturn. AWA General Manager Gene Mancebo says closed businesses, vacant homes, reduced water usage, and virtually non-existent development have all contributed to a dramatic decrease in income to the Agency.
Rate increase protests in La Mel Heights, Lake Camanche and CAWP systems have prevented scheduled rate increases and reduced Agency revenues further. Most recently in the upcountry CAWP Retail system, 1,396 signatures opposing a proposed three-year water rate increase were verified, successfully halting the rate hike. Under the state’s Prop. 218 rate protest procedure, opponents of the rate increase needed over 50 percent of the system’s 2,625 water users to formally protest the rate increase to succeed. In the meantime, the Agency must continue to provide service to all of Amador County’s water and wastewater customers and fulfill its commitment to public health and safety. “Many of the Agency’s costs are out of our control,” says Mancebo. “The cost of fuel for vehicles, electricity for pumps and treatment plants, water treatment chemicals, state reporting fees – we can’t make cuts in these kinds of operating costs.” The Agency has reduced staffing costs by approximately 25 percent over the past two years. In 2008 there were 62 regular full-time equivalent positions and four temporary positions at AWA; currently there are 46 regular full-time equivalent positions and no temporary positions. Four full-time workers were laid off as of July 23. Over $1.23 million in total salaries and benefits have been cut since the 2008-2009 budget year. At their last Board meeting, Directors approved implementing the 4 percent balance of a previously approved 12 percent rate increase for the Amador Water System, which was only partially implemented at the beginning of last fiscal year. This rate increase allows the 2010-2011 budget to balance but requires already depleted cash reserves to be reduced by at least another $300,000 to meet expenses. Mancebo says the pattern of reducing reserves is not sustainable and the Water Agency can’t absorb another year of reserve reductions without severe financial consequences. “Everyone at the Amador Water Agency recognizes that these are also difficult economic times for ratepayers and many others in the county,” said Mancebo. “We have very talented and committed employees here at the Water Agency and we hope the meeting Tuesday will result in some creative ideas that will help us meet our current economic challenges.” Via Press Release This email address is being protected from spambots. You need JavaScript enabled to view it.
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Amador County - On the heels of a third successful rate increase protest, this one on the CAWP Retail System, the Amador Water Agency Board of Directors has scheduled a meeting with all Water Agency employees to brainstorm ideas for both cost reductions and revenue increases at AWA. The meeting is an opportunity for the Board and Agency staff to discuss possible concepts that may ultimately improve the financial health of the Agency. The meeting will be held Tuesday, August 3 from 8:00-11:00 am in the Agency Board Room. Just like other local government entities, the Water Agency has been challenged by recent years of economic downturn. AWA General Manager Gene Mancebo says closed businesses, vacant homes, reduced water usage, and virtually non-existent development have all contributed to a dramatic decrease in income to the Agency.
Rate increase protests in La Mel Heights, Lake Camanche and CAWP systems have prevented scheduled rate increases and reduced Agency revenues further. Most recently in the upcountry CAWP Retail system, 1,396 signatures opposing a proposed three-year water rate increase were verified, successfully halting the rate hike. Under the state’s Prop. 218 rate protest procedure, opponents of the rate increase needed over 50 percent of the system’s 2,625 water users to formally protest the rate increase to succeed. In the meantime, the Agency must continue to provide service to all of Amador County’s water and wastewater customers and fulfill its commitment to public health and safety. “Many of the Agency’s costs are out of our control,” says Mancebo. “The cost of fuel for vehicles, electricity for pumps and treatment plants, water treatment chemicals, state reporting fees – we can’t make cuts in these kinds of operating costs.” The Agency has reduced staffing costs by approximately 25 percent over the past two years. In 2008 there were 62 regular full-time equivalent positions and four temporary positions at AWA; currently there are 46 regular full-time equivalent positions and no temporary positions. Four full-time workers were laid off as of July 23. Over $1.23 million in total salaries and benefits have been cut since the 2008-2009 budget year. At their last Board meeting, Directors approved implementing the 4 percent balance of a previously approved 12 percent rate increase for the Amador Water System, which was only partially implemented at the beginning of last fiscal year. This rate increase allows the 2010-2011 budget to balance but requires already depleted cash reserves to be reduced by at least another $300,000 to meet expenses. Mancebo says the pattern of reducing reserves is not sustainable and the Water Agency can’t absorb another year of reserve reductions without severe financial consequences. “Everyone at the Amador Water Agency recognizes that these are also difficult economic times for ratepayers and many others in the county,” said Mancebo. “We have very talented and committed employees here at the Water Agency and we hope the meeting Tuesday will result in some creative ideas that will help us meet our current economic challenges.” Via Press Release This email address is being protected from spambots. You need JavaScript enabled to view it.
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