Amador County – In late September, the Plymouth City Council found that costs are higher and water sales are lower than predicted in the city’s budget, after the council received a review of a water rate analysis done in 2008. The study by the Reed Group, and Bob Reed, looked at costs and the setting of rates for the new pipeline the city has since built in partnership with Amador Water Agency.

Reed, who did the study in 2008 and the review, delivered the results in a report, saying, in part, that the “trend of negative balances was anticipated, but actual (cost) is worse than projected.” He said “internal city costs are the largest component of difference between 2008 analysis and actual” costs.

He suggested ways to improve the fund balance. One was with a final reimbursement and adjustments from the pipeline project, which would be a one-time payment of approximately $65,000. He said the city will have a reduced annual debt service resulting from final accounting, annually expected in the $5,000 to $10,000 range. Reed said the city could charge accounts for water for about $19,000 and “work with new development to prepay water fees.”

Reed said city expenditures were $290,000 over estimated costs, at $1.1 million. Total revenue was $250,000 below estimates, at $1.8 million. Costs were also down compared to the 2008 study estimates, with AWA water costs down $200,000, and debt service down $135,000. Total expenditures were $68,000 under the study, and overall net results were $186,000 less than expected, at $216,000 in the hole.

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