The drought and its potential impact on water revenues were among several issues taken up by the board of Georgetown Divide Public Utility District at a Monday night budget workshop.
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This followed last month’s announcement by Gov. Jerry Brown that the state is suffering a drought and residents should voluntarily cut their water consumption by 20 percent.
Held jointly with GDPUD’s finance committee, board and committee members reviewed projected revenues, expenses and a capital improvement plan for the next fiscal year.
However, uncertainty over water revenue in a dry year led Interim General Manager Gary Hoffmann to prepare two revenue scenarios for the board — one based on normal water sales and the other based on a 20 percent reduction in sales from treated water along with a 50 percent reduction in sales of irrigation water.
Hoffman estimated the second scenario would reduce revenues to the district by $183,000. He said the amount was relatively small because customers pay a set amount for water service each month and that provides a reliable base of revenue to the agency.
Director Norm Krizl commented that the recent announcement by Gov. Brown does not require the district to implement a 20 percent reduction in water use. That decision is up to the board, he said, adding that depending upon how much rain they receive over the next few months, the board may face some tough decisions ahead, especially in regards to irrigation users.
A preliminary capital improvement plan for the next fiscal year was also discussed. Hoffmann suggested spending $873,000, which includes the district’s contribution to the Auburn Lake Trails Water Treatment Plant upgrade plus other improvements such as ditch linings and pipe replacements.
Hoffmann said it’s his intention to later prepare a multi-year plan that will include projected costs as well as suggestions on how to fund future capital projects. An updated cost of service study is currently under way that’s expected to help justify future rate increases.
A list of the district’s capital assets was also prepared by the finance committee and presented to the board.
Further budget discussions between the board and the finance committee will take place at a later date.
The next regular meeting of the board will be on Feb. 11 at 5:30 p.m. at district headquarters.
Contact Dawn Hodson at 530-344-5071 or [email protected] Follow @DHodsonMtDemo on Twitter.