Amador County – The Amador Water Agency board discussed obligations for a $900,000 loan it approved last week to help balance cash flow in the agency. Director Terence Moore said staff and the board have been working for 3 months on the expected cash shortage, as May 15th neared, the date for the third payment on the Amador Transmission Pipeline. Finance Manager Mike Lee said the payments have been getting larger and this is the maximum payment the agency will have to make. The loan from the Amador County “Water Development Fund” will pay for Gravity Supply Line “sunk costs,” and free up cash for the bond payment. President Bill Condrashoff said the loan “obligates all AWA customers as a whole,” and could lead to a levy on all properties in the district. Finance Manager Mike Lee said the Central Amador Water Project wholesale system is getting the loan, and will have to pay it back. AWA Attorney Steve Kronick said “the loan is for the benefit of CAWP,” so its customers must repay it. District 3 Director Don Cooper said a 2001 agreement obligates CAWP, but he also gets “a little uncomfortable separating a county organization from the Amador Water System,” because there were systems within the AWA organization that will never be able to pay all of such project costs. Condrashoff said they must repay the loan by raising rates in CAWP, for which the board recently approved preparing notices. CAWP rates have not changed since 2006, and the loan will repay sunk costs of $1 million spent on the Gravity Supply Line, which included reserve fund loans from the Amador Water System. Condrashoff said “this is a potential catastrophe for this agency.” Kronick said the agency has the authority to tax its customers to repay the loan, if needed, but it would require a two-thirds election of all affected properties,’ and “that would only occur if the agency did not make payment.” He said it would not be a county-wide tax, and would not be an issue until after the first of the year. The loan must be repaid by December 31st, and the agency expects to get revenue sufficient to make the repayment in the next 3 months of June, July and August, when water usage is typically the highest. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
Wednesday, 19 May 2010 02:48
GSL Loan Obligates CAWP Customers in AWA
Amador County – The Amador Water Agency board discussed obligations for a $900,000 loan it approved last week to help balance cash flow in the agency. Director Terence Moore said staff and the board have been working for 3 months on the expected cash shortage, as May 15th neared, the date for the third payment on the Amador Transmission Pipeline. Finance Manager Mike Lee said the payments have been getting larger and this is the maximum payment the agency will have to make. The loan from the Amador County “Water Development Fund” will pay for Gravity Supply Line “sunk costs,” and free up cash for the bond payment. President Bill Condrashoff said the loan “obligates all AWA customers as a whole,” and could lead to a levy on all properties in the district. Finance Manager Mike Lee said the Central Amador Water Project wholesale system is getting the loan, and will have to pay it back. AWA Attorney Steve Kronick said “the loan is for the benefit of CAWP,” so its customers must repay it. District 3 Director Don Cooper said a 2001 agreement obligates CAWP, but he also gets “a little uncomfortable separating a county organization from the Amador Water System,” because there were systems within the AWA organization that will never be able to pay all of such project costs. Condrashoff said they must repay the loan by raising rates in CAWP, for which the board recently approved preparing notices. CAWP rates have not changed since 2006, and the loan will repay sunk costs of $1 million spent on the Gravity Supply Line, which included reserve fund loans from the Amador Water System. Condrashoff said “this is a potential catastrophe for this agency.” Kronick said the agency has the authority to tax its customers to repay the loan, if needed, but it would require a two-thirds election of all affected properties,’ and “that would only occur if the agency did not make payment.” He said it would not be a county-wide tax, and would not be an issue until after the first of the year. The loan must be repaid by December 31st, and the agency expects to get revenue sufficient to make the repayment in the next 3 months of June, July and August, when water usage is typically the highest. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it. Latest from
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