Amador County – The Amador Water Agency discussed its budget last week at the fiscal mid-year, hearing that cash was nearly double over last year.

Board President Don Cooper said water sales were 6.7 percent under budget, which he saw as a “red flag.” Director Gary Thomas said they should try to “identify which areas are hurting us the most.” Finance Manager Mike Lee said water usage in the budget is “completely seasonal,” with May and June being the biggest usage months. He said the usage trend has been flat, and they can attribute it to vacancies, foreclosures and people trying to use less water.

Director Paul Molinelli said he preferred “January to December actuals” to compare year over year details and variances. Director Robert Manassero said that pre-recession years were irrelevant.

Molinelli asked how actuals stand against the agency auditor’s “cautions,” and whether the agency will recover “fast enough.” General Manager Gene Mancebo said the agency is moving toward reduced capital and expenses, and increased revenue, but “I don’t think we’re there yet.”

Lee said: “We kept hearing that the Titanic was in front of us. Well, we’ve avoided the Titanic.” Cooper said: “Let’s talk about cash, because cash is king.”

Lee said total cash flow for January 2011 “will be $700,000 more than we were last year.” He said “we’re well above last year, and we’re going to be trending in the right direction.”

Thomas said with “$100 million in assets in the ground,” a cash reserve of 1 percent would be $1 million. Lee said that amount has been the rule of thumb, and that has dropped.” He said “the agency has gotten by with half a million” in reserve.

Cooper said net revenue at mid-year looks good at $267,000, but operation and maintenance was under budget. He asked: “Are we deferring operation and maintenance and accepting an overrun in benefits and salaries to meet the budget; and if so, why?”

Mancebo said the agency is “lean,” and staff is forced to make the budget work with available revenue. He said: “You don’t see a lot of operation and maintenance there because staff is doing what it was told,” which was to curb spending. He said there will come a time when “operators have to go out and operate.”

Four layoffs now show in the finances, Thomas said, and another $50,000 drop will come from board salary and benefit cuts. Molinelli asked when does concessions come up for review, and Mancebo said they expire June 30. Mancebo said they need a few months to sit with employee groups and discuss concessions, so by April, they need to be in that process.

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