Amador County – Amador Water Agency directors last week discussed the issue of operating and capital salary overruns, and sent that and other budget work to different committees.

President Bill Condrashoff said he placed on the agenda for discussion the issue of “budget variance concerns of operating and capital salaries.” The board assigned it to the budget and finance committee, made up of Directors Don Cooper and Condrashoff.

The agency is $500,000 shy of its budget, Condrashoff said, due to lost revenues, and “we have not been informed as a board” or given approval of the budget overruns. He thought they needed a “line item policy to keep track of” each system, to bring the line items to the board when they exceed budget by 10 percent.

Director Gary Thomas agreed they should hear about a “spike in the budget,” but he disagreed with 10 percent, saying it was too high. He said the board should have alerts simply to keep the budget balanced.

Vice President Debbie Dunn said they should look at the authority the general manager has to override the budget.

Finance Manager Mike Lee said his monthly budget report, with variance, gives information about overruns, and if it is over by 10 percent, it gives the reason.

Dunn said the monthly report “doesn’t put it on the agenda,” so they can only briefly discuss items. She said the report protects staff, “but we end up holding the bag.”

Director Don Cooper agreed with Dunn, and said they also need to allow staff to develop a better forecasting tool. He said they also should link to specific capital projects, because if they are “not lined up,” then “maintenance and operations funds are used to pay for it.” He also recommended looking at creating general construction crews, or borrowing crews from neighboring water districts.

Director Terence Moore agreed with Condrashoff, if his idea meant to have a policy for review of any budget line item running over budget, by sending it to the budget and finance committee. He said he thought budget & finance could handle “line item control, unless it becomes unstoppable,” then it could go to the full board.

Condrashoff said he meant staff. He said: “If we set a budget, it’s up to staff to hit that budget, and if they can’t, they should bring it to us.” He said: “Staff should come to us for approval of increases to each line item, before money is spent.”

Cooper said the problem is that reports are two months after the fact. Condrashoff said staff knows when they spend over budget, and they should say something to the board.

The board agreed to send the topic to the budget and finance committee, made up of Cooper and Condrashoff.

Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.