CCWD OKs budget, defends projects

By Stephen Crane | Posted: Friday, June 28, 2013 /The Calaveras Enterprise

The Calaveras County Water District has had a busy week, and more work remains leading up to its special board meeting July 10.

See the district’s service area here.

Amid the scramble to educate an incensed public about its proposed rate increases, the district held two separate town hall meetings this week – one in Copperopolis Tuesday evening, and another the following night in Valley Springs. The district also held its regular board meeting Wednesday morning in San Andreas, where it voted to approve its operating budget for the upcoming year.

The budget totals $16.7 million for the 2013-14 fiscal year and includes $8.3 million for projected personnel costs, $5.68 million for supplies and services, $2 million for debt service obligations and $638,000 for capital outlay.

However, a significant expense was left off this year’s approved budget due to a lack of revenue.

“We do have a number of unfunded capital improvement projects,” explained Lynn Gentry, the director of support services for the district. “$5.3 million in projects is what we need to do, and right now, we don’t have funding for that and that’s why it’s not included in this budget.”

The capital improvement program includes 22 different projects throughout the county. Ten are for water projects, 12 are for wastewater, and seven are listed as high priority.

Read the five-year capital improvement plan here.

These capital improvement projects, as well as additional projects in future years, lie at the heart of the recent debate surrounding the proposed rate increases by the district, which would incrementally increase people’s water rates by 69 percent over the next five years. Wastewater rates would increase by 62 percent. This proposed increase has drawn the ire of the public since it was first announced.

At the town hall meetings and at Wednesday’s board meeting, district directors and managers did their best to explain the reason behind the proposed increase. The recession was a common talking point.

Prior to the economy’s downward spiral, Calaveras County saw a significant growth spurt in development. The district met with planners, who anticipated a steady increase in new customers as development continued to grow in the county.

“We anticipated 400 new connections and 2,000 additional customers,” explained Gentry at the board meeting. “Those connections did not materialize. And the foreclosures have been horrendous.

“So when you look at the domino effect there, not only are we having a lot less revenue coming in, but we’re having to write off foreclosures and people who aren’t paying their bills.”

After the recession hit, new customers disappeared along with some of the old. The district was left with a laundry list of projects it could no longer afford, despite the dire need to complete them.

“When the economy crashed, we took a big hit,” explained CCWD General Manager Mitch Dion at the town hall meeting Tuesday night. “We went into a holding pattern because we didn’t have funds.

“We’ve cut positions, but the casualty in all this is, we weren’t able to fund our capital improvement program.”

Some members of the public claimed the financial situation confronting the district points to an internal problem.

“It seems to me there’s a lot of mismanagement going on,” said Karen Turner, who attended the Copperopolis meeting. “Shame on you for not adjusting your budget!”

While the district was operating in good financial standing prior to the recession, the current district directors aren’t willing to point to the past.

“This is painful for everybody involved,” said Director Don Stump at the board meeting Wednesday. “I’d love to sit up here and tell you we got screwed. But I’m not here to just blame everybody in the past.”

Kathi Toepel, who attended the board meeting, pointed to those directors who were on the board back then and are still on the board now.

“What about the ones who were responsible for this?” she asked. “They’re still here.”

Of the five members of the board, three have been on for at least seven years, including President Dennis Dooley, who served for eight years, took a break and has now served three more years. Director Bob Dean has been on for seven years. And Jeff Davidson has been serving for about 20 years.

“To be frank, I have the easier job,” said Dion at Tuesday’s town hall meeting. “They’re (the directors) damned if they do and damned if they’re don’t. Ultimately, those elected officials, they’re in the hot seat.”

For customers, the current proposed rate increase comes on the heels of another increase, which was implemented in 2007. This fact leaves some scratching their heads.

“The bottom line is that the rate increase just doesn’t make sense in terms of the amount,” said Vallecito resident Tom Heermance at the board meeting. “And it doesn’t feel right because we just finished the last increase

“It’s more than a 100 percent increase in the last ten years.”

Most residents acknowledged the need for infrastructure improvements in the county, but many simply can’t afford the proposed increase given the current economy.

“You (Stump) can afford it. I can afford it,” said Bertha Underhill, who works with seniors and attended both town halls this week, as well as the board meeting. “We’re talking about the silent ones who can’t afford it. It’s a choice of medicine, food and now water and sewer.

“We know the infrastructure must be worked on, we know it must be maintained, but we’re asking the directors to make it a livable rate.”

The public is invited to attend the July 10 special board meeting at the district’s San Andreas office, though the location could change to do the limited space available in the board room. Property owners also have until the July 10 meeting to deliver protest letters to the district, which can also be delivered by hand at that meeting.

See a map to the district’s new headquarters here

For more information, visit the district’s website.