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Monday, 19 October 2009 00:38

La Mel Stops Increase, $142,000 Budget Deficit Looms at Year's End

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la_mel_stops_increase_142000_budget_deficit_looms_at_years_end.pngLa Mel Heights – A water district of 59 customers petitioned to stop a rate increase by the Amador Water Agency last week, leaving the AWA board of directors looking for ways to cut costs in the small district. Interim General Manager Gene Mancebo said La Mel Water Improvement District customers used a “Proposition 218” protest petition to stop the rate increase by the AWA, which has operated the La Mel district since 1986, after being asked to do so by the property owners association there. AWA Attorney Steve Kronick said the petition to oppose was a legitimate stopper to the rate increase. He said it had to have signatures of more than 50 percent of customers. They presented opposition petitions at the meeting last Wednesday at Lockwood Fire Station Number 2. Mancebo said the number of signatures “was nearly 100 percent – in the magnitude of 56 out of 59 customers.” The AWA board took questions and comments and staff will look into other solutions to a growing deficit. A 3-year fee schedule the board considered would have raised rates by 8 percent the first year, and 15 percent the second and third years. Mancebo said the rate schedule is moot, but the board must look for ways to defer a steadily increasing deficit in the La Mel system, run independently through fees from its customers. Without the rate increases over the next 3 years, he said La Mel WID’s budget will be short by $142,000 in fiscal year 1; $155,000 in year 2; and $170,000 in year 3. Ideas included allowing residents in the area to get certified to make meter readings and other work, saving on the 1-hour round trip commute it takes to do service there. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
Read 734 times Last modified on Tuesday, 20 October 2009 04:42