The Pine Cove Water District Board of Directors reviewed the proposed budget for fiscal 2015-16, which begins July 1. The total budget of $821,000 is only 2.6 percent more than the current-year budget and is balanced without the need to use reserves, General Manager Jerry Holldber told the board.

Revenues are expected to increase $46,000, primarily due to the recent rate increase. However, rentals from the leases at the district’s Rocky Point communications site will grow $7,000 (4 percent).

District expenses are budgeted for $821,000. The principal increase is for services and supplies, and facility improvements. These total $31,000 and are offset by a $12,000 reduction in right-of-way fees to Southern California Edison.

The improvements budget includes $13,000 to buy 200 new water meters, a $6,000 increase to continue the main line replacement and $5,000 to inspect water-storage tanks.

The Salaries and Benefits account remains at $470,000, although a $4,000 increase in salaries is planned. Overtime and part-time employee costs decrease about $11,000 because of the recent addition of two new employees.

For the current fiscal year, expenditures have exceeded revenue by about $58,000 through March 31. However, two more billing periods and the final property tax receipts will be received before June 30.

In water business, PCWD has produced about 9.5 million gallons of water in the first four months of 2015. In 2014, the production through April was 8.5 million gallons. The last time production exceeded the 2015 level was 2009, when the district used 10.3 million gallons in the first four months of the year.

Actual production in April was 2.7 million gallons, which is 18,800 gallons less than in 2014.

Although the district’s water loss was 14 percent, Holldber said there are no major leaks. In his opinion, the water meters are inefficient. Replacing meters, which have registered more than 1 million gallons, and meters more than 15 years in the ground will be part of the next year’s capital program. He hopes to replace about 150 meters annually for three years.

To encourage conservation, the district has barrels to collect rainwater available for $57.19, which is the district’s cost.