Ledger-DispatchAmador Water Agency budget cuts reduce rate increases
Tuesday, June 23, 2009
By News release 
In a move designed to minimize future rate increases, the Amador Water Agency 
Board of Directors has cut $630,773 in operating costs from the Agency's 2009 - 
2010 budget. The final budget, 10.9 million, was approved Friday with a 5 - 0 
vote at the end of three day-long budget workshops.

The approved budget will reduce rate increases that were scheduled to go into 
effect for two Agency systems starting July 1 of this year. A scheduled 12 
percent increase for Amador Water System water rates will be reduced to an 8 
percent increase, and Martell Wastewater System rates will go up 15 percent 
instead of a previously approved 25 percent increase.

Directors hope the budget cuts will be enough to hold water rates for Lake 
Camanche Village, CAWP Retail Customers (Central Amador Water Project) and the 
other Agency wastewater systems at an 8 percent increase for 2009 - 2010. These 
systems have not seen a rate increase since 2006. Rates for these systems have 
not yet moved through the California Prop. 218 notification and hearing process 
for rate changes.

The $630,773 in cuts affects all Agency departments, including holding off on 
replacing equipment, delaying some employee trainings, and potential elimination 
of all cost of living and merit pay raises. 

Staff layoffs are a possibility if enough other cost reductions can't be found. 
AWA General Manager Jim Abercrombie will meet with the Agency's three employee 
associations to discuss voluntary retirement and severance programs. 

"We recognize that these are difficult economic times for ratepayers," said 
Abercrombie. "The Water Agency's operating costs have been holding steady with 
flat budgets for the past three years. For example, we've been keeping three job 
vacancies unfilled to save money." 

"Our challenge now is to tighten the belt while we continue to meet increasingly 
tough and costly new state regulations and fulfill our commitment to public 
health and safety," said Abercrombie.

AWA Directors plan to revisit the 2009 - 2010 budget again in October. Closing 
the budget gap could get much more difficult if hoped-for grant funds aren't 
forthcoming or if the state appropriates the Agency's annual property tax 
revenue later this summer.






      News release