At its May 8 meeting, the Pine Cove Water District board of directors began reviewing the proposed budget for fiscal year 2013-2014 that begins July 1. Revenue estimates of $760,000 are the same as this year (2012-13); but expenses increase $65,000 for a total of $825,000.
Differences would be made up from a combination of restricted reserves and a $40,000 carryover for the current budget year. No rate increase will be needed to cover this difference.
The $15,000 additional in salaries and benefits is primarily for a 3.5 percent cost of living raise; overtime for a part-time employee from June through September to assist in pipeline replacement; PERS contributions and medical and life insurance. These increases are partially offset by reductions in other tax payments (such as FICA) and worker’s compensation.
The improvement account grows $11,000. More than $40,000 is for main line replacement work, which is partially offset with decreases in source development and well replacements.
The largest change is $33,000 for post-employment benefits (typical health insurance). This is unfunded and this amount is about a third of the total due. The board will consider paying it sooner depending upon the result of the state’s return of other money due the district. The board will vote on the joining CalPERS Retirement Benefit Trust and decide on what investment strategy to adopt.
The board voted to adopt resolutions setting district policy regarding the Ralph M. Brown Act, the Public Records Act, conflicts of interest, financial reserves and workman’s comp.
In his report, General Manager Jerry Holldber noted recent rainfall has helped district wells. “All are in good shape,” Holldber said. Production is down slightly from April 2012 levels (2.2 million gallons compared to last years 2.4 million) but 300,000 gallons more than 2011.
Grading has begun on the lot across from the Pine Cove Water District offices that will soon house additional CAL FIRE Station 23 personnel in a temporary trailer. The trailer is needed to house fire staff for the new Schedule B engine that is being brought to Station 23. The district has a month-to-month agreement with CAL FIRE for renting the property at $500 per month. Holldber estimates the rental period to last for one to two years.
State Health Inspector Chun Huang said the district system was very well maintained, according to Holldber.