Fiscal Responsibility and EID
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FISCAL RESPONSIBILITY AND
EID
How Is EID doing?
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EID Mission Statement
“We are a public agency dedicated to providing high quality water, wastewater treatment, recycled water, hydropower, and recreation services in an environmentally and fiscally responsible manner.”
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Fiscal Responsibility and EID Drought conservation status Water rights threatened $49 Ag vs. $829 residential water No drought in EID spending Next debt offering will increase rates
15% It takes three!
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Drought conservation We need to maintain vigilance -- Everybody needs to help conserve That said: -- The weather is a big factor (heat/rain) -- EID is a big culprit/ 6,800+af leaks -- Measurement unfair to residential customers who conserved 18% prior -- Small farm $49 usage up 1,400 af
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Water rights threatened State board trying to overturn legal rights EID seeking litigation partners to protest if
pre-1914 water rights abrogated
EID expects 17,000 af of new consumptive water rights that will aid carryover storage
EDWPA seeking 40,000 af of new water rights although 60% is for new rooftops and 40% is for Agriculture…highly speculative as to whether project will be successful
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$49 vs. $829 water By CA law, rates must be cost-proportional Yet: -- Agriculture and small farms pay $49 per acre foot of all outside water -- Residential ratepayers pay $829 per acre foot for most all outside irrigation -- Board split 2-3 as to acknowledging, much less addressing, this $49 vs. $829 rate differential
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No drought in spending Every Management spending proposal
brought to EID board this year has passed 3-2, 4-1 or 5-0
June 9th meeting had $3 million of projects for a 100% cost-overrun bridge, vehicles, hydroelectric…all passed 3-2
Each million dollars spent brings us closer to next debt offering and next 15% additional rate hike
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More debt = more rate hikes One-third of rates go to pay for debt EID General Manager planning $65
million new debt $65 million new debt will require 15%
more rate hikes (on top of rate hikes for increased salaries, benefits and other inflation)
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It takes three! EID board has two fiscal conservatives
putting interests of residential ratepayers first.
It takes three (of five) board directors to direct:
- Less spending - Less new debt - Less rate subsidies to special interests - Less new rate hikes