By Jim Reece - The Amador Water Agency removed surcharges from all retail and wholesale water agency customers effective March 1, 2009. General Manager Jim Abercrombie said the “state raided property taxes” in July 2004, when the Governor signed the state budget. AWA replaced it with the surcharge. The budget included a property tax shift from cities, counties and special districts to the state to reduce the state’s deficit. The law took 1.3 billion dollars over two years from local governments and gave it to the state. Of that amount, 350 million dollars was to be transferred from special districts. Abercrombie said the Amador Water Agency created a surcharge to make up for the loss of income, with totaled approximately 280,000 dollars, or 1.7 percent of the AWA operating budget over a 2-year period. Michael Lee, AWA financial services manager, prepared a background report on the surcharge, and its impact on the AWA, noting that the board of directors in April 2005 reduced the fiscal year budget ending in 2005 by the amount of 47,500 dollars to help offset the property tax loss. The remaining shortfall of 232,500 was to be recovered from the surcharge, which would remain in effect until the agency recovered the lost property tax revenue. Lee said the surcharge has been in effect for all retail and wholesale water service customers since August 1st, 2005. Lee said that by August 30th, 2008, the AWA had collected all but 74,371 dollars of the 232,500-dollar goal. The agency also collected money from additional property tax valuations over the last three fiscal years. Lee said by March of 2009, the agency will have collected the entire 232,500 dollars needed to replace the lost funds and could then consider rescinding the charge without impacting the budget. Staff said the action recommended by AWA’s attorney, however, was to remove the surcharge. The item passed 5-0.
Tuesday, 28 October 2008 02:29
AWA To Remove All Surcharges
By Jim Reece - The Amador Water Agency removed surcharges from all retail and wholesale water agency customers effective March 1, 2009. General Manager Jim Abercrombie said the “state raided property taxes” in July 2004, when the Governor signed the state budget. AWA replaced it with the surcharge. The budget included a property tax shift from cities, counties and special districts to the state to reduce the state’s deficit. The law took 1.3 billion dollars over two years from local governments and gave it to the state. Of that amount, 350 million dollars was to be transferred from special districts. Abercrombie said the Amador Water Agency created a surcharge to make up for the loss of income, with totaled approximately 280,000 dollars, or 1.7 percent of the AWA operating budget over a 2-year period. Michael Lee, AWA financial services manager, prepared a background report on the surcharge, and its impact on the AWA, noting that the board of directors in April 2005 reduced the fiscal year budget ending in 2005 by the amount of 47,500 dollars to help offset the property tax loss. The remaining shortfall of 232,500 was to be recovered from the surcharge, which would remain in effect until the agency recovered the lost property tax revenue. Lee said the surcharge has been in effect for all retail and wholesale water service customers since August 1st, 2005. Lee said that by August 30th, 2008, the AWA had collected all but 74,371 dollars of the 232,500-dollar goal. The agency also collected money from additional property tax valuations over the last three fiscal years. Lee said by March of 2009, the agency will have collected the entire 232,500 dollars needed to replace the lost funds and could then consider rescinding the charge without impacting the budget. Staff said the action recommended by AWA’s attorney, however, was to remove the surcharge. The item passed 5-0.
