Ramona Water Board OKs Budget

Ramona Municipal Water District (RMWD) Board of Directors has given approval for a $28 million budget that will cover the district’s expenses for the 2011-12 year. The budget, presented to the board at its Sept. 13 meeting, includes proposed water and sewer rates which will not be finalized until a public hearing on Oct. 25.

The budget is essentially the same as when it was first presented to the board at the July 12 workshop.

Several people, including former board member Doug Wilsman, expressed concerns over the two approvals – budget and rates – not being done simultaneously. Assistant General Manager David Barnum stressed the need for the budget being approved now in order to meet certain deadlines with other agencies, such as the County Water Authority. It also provides district staff with guidelines for running their departments.

“We have a budget that’s unique in history,” Wilsman said. “I’ve watched budgets since 1990 and never saw one like this before.

“I’ve looked at studies this group (Raftelis) has done for other districts. I think there are some people here tonight that would like to tell you what they think of the rate study so you can have that to look at (before the public hearing on Oct. 25).”

The RMWD rate study was conducted by Raftelis Financial Consultants, specialists in providing services for water and wastewater utilities.

Local resident Bob Hatch asked the board to consider a proposal from the California Avocado Commission to form a task force to reconsider raising rates of untreated water used by agricultural customers.

“Maybe it will increase water usage and help the budget,” Hatch said.

Ken Melvin, from Irvine and representing the California Avocado Commission, also addressed the board.

“We appreciate some of the challenges you are facing as a board,” Melvin said. “We do feel there definitely is an opportunity for talking to you about helping those in the minority.”

He said the agricultural users of untreated water represent 25 percent of RMWD’s customer base.

Eric Larson, executive director of San Diego County Farm Bureau in Escondido, said there needs to be a partnership between the district and the growers.

“The growers have done an excellent job of conserving water,” Larson said.

Directors agreed to form a new ad hoc committee to meet with representatives from the agricultural community. Directors Brian Wadlington and Kit Kesinger will sit on the committee, with Kesinger in charge.

It became necessary to postpone the public hearing on rates when an initial letter of notification did not include the time of the meeting. Originally, the public hearing was scheduled for Sept. 13. A second letter with the correction was sent to the district’s 9,500 customers, moving the date to Oct. 25 to be in compliance with state law that requires a 45-day waiting period after the customers are notified by mail.

If at that time, the board does not agree to the proposed rates, a revised budget will be required to reflect the changes, delaying the budget going into effect another two or three months, Barnum said.

District staff has seen a 10 percent cut in personnel since 2009-10. When certain positions were vacated due to retirement, a replacement was not hired. The district has since contracted with independent firms to fill the void.

The district also has seen a savings in $1 million in operating costs since 2009-10 and the cash position has improved, Barnum said. In addition, two long-term loans have been paid off.

“RMWD has never cut any services to its customers,” Barnum said.

The budget, totaling $28,317,793, was approved by a 3-1-0 vote. Directors Wadlington, Darrell Beck and Joe Zenovic were in favor; Kesinger voted against it; and Director Everett “Red” Hager was not in attendance.

The public hearing on the rate proposals will take place during the regular board meeting, beginning at 4:30 p.m. Oct. 25 at Ramona Community Center, 434 Aqua Lane.

In other business, the directors approved the annual cooperative agreement with the California Department of Forestry and Fire Protection (CalFire), the agency that provides fire protection services for Ramona.

“Same services,” Barnum said. “No changes in service levels.”

The contract with CalFire is approximately $5 million for 2011-12.

The next meeting of the RMWD Board of Directors is at 4:30 p.m. Sept. 27 at Ramona Community Center, 434 Aqua Lane.