Wednesday, 09 June 2010 06:24

AWA Looks at a $5 Million USDA Grant.

slide4.pngAmador County – The Amador Water Agency board of directors held a 2010-2011 budget workshop Tuesday, discussing rates, its financial plan and whether or not the agency will get a grant for its biggest project in the coming fiscal year. Finance Manager Michael Lee included the “Gravity Supply Line” in the draft budget in both spending and revenue, even though the agency has yet to hear from the U.S. Department of Agriculture about whether it will get a $5 million grant. Engineering Manger Erik Christesen said the grant paperwork was delayed by a month, meaning the agency may have to wait until at least July to get a list of grant qualification conditions from USDA. President Bill Condrashoff said there was a movement in the Central Amador Water Project area toward a Proposition 218 protest on a rate increase there, and he asked what the agency would do with the GSL project if that happened. Director Don Cooper said people should know about the importance of the rate increase. Lee said if they adhere to the agency financial plan, and raise rates accordingly, they will be able to run the agency financial systems. He said CAWP has not had a rate increase since 2006, and if they don’t get it because of Prop. 218, “the other side of the house will fall in, because you can’t run a system on 4-year-old rates.” Director Terence Moore said if the rate increase fails, “we’ll have to do another rate increase in 6 months.” Vice President Debbie Dunn criticized that, and said the board should give the people what they want. She said the agency should not be “building anything for more people to come to this county.” Dunn said: “There’s no reason for people to come to this county,” and “supervisors aren’t doing anything to attract businesses” here. She said building the GSL would be like “running pipes to a house you can’t sell.” She said: “What are the people that run this agency going to do from their back pocket?” Condrashoff said rates are being used to pay for capital improvements outside of their own systems. Dunn said she didn’t want the GSL holding the AWA board “hostage.” Cooper said he thought Dunn was trying to say that they should ask Lee to bring back a budget that did not have the $5 million USDA grant, to see what they would be left with, and to see if there was a loan attached to the grant that was required to be paid by ratepayers. Cooper supported looking at the budget, and said if it was true, they may have to look at the grant and loan again. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.