In a brief meeting last Thursday, the Fern Valley Water District’s (FVWD) board of directors reviewed the end of fiscal year 2022-23 financial results and appointed a committee to review conservation incentives.
Last year’s budget surplus topped half a million dollars.
For the fiscal year ending June 30, 2023, FVWD’s income was a pleasant surprise. As a result of higher-than-expected tax revenues, the total income of $1.9 million was 10% greater than forecast when the budget was originally approved in June 2022. The tax revenue was $170,000, more than 20% greater than the original projection of $750,000.
Expenses were about $100,000 or 7% less than the original projection. Both the operating and capital expenses contributed to this savings.
Operational savings totals $55,000. The greatest savings was $17,000 for employee benefits. Repairs, maintenance and salaries also were $24,000 less than projected.
However, costs for filtration and chlorination grew 50% from $40,000 to slightly more than $60,000. This was largely attributable to the increase cost for the carbon changeout. FVWD General Manager Victor Jimenez said the district is now purchasing chlorine in bulk rather than trying to generate it at the filter plant.
“The equipment failed and is obsolete and replacing it with a new chlorine generation system would cost a fortune, so we opted to go with liquid chlorine deliveries,” he said in an email. “We only have to order it every 12-18 months or so, so it is much more cost effective for us.”
The capital budget was smaller than normal for fiscal year 2022-23 since no pipeline projects were started. Nevertheless, the total capital expenses were $44,000 less than the projection. About two-thirds of the savings occurred because FVWD did not purchase new vehicles as planned. The balance was due to less spent on equipment and data control software.
The total budget surplus as of June 30 was $510,000, more than twice the original estimate. FVWD’s current cash reserves are about $1.75 million.
During the review of the current budget, there was discussion about trying to reduce mailing costs for bills by sending them via email. However, Jimenez told the board, “We don’t have enough email addresses.”
President Gary Erb urged the staff to continue to solicit email addresses for customers in an effort to “go paperless.”
Besides financial matters, the board discussed its current conservation incentives. Besides barrels for collecting rain, they recognized other options. Several years ago, FVWD, and other districts, provided a rebate when a customer installed a low-flush toilet. Currently, the district uses a rain capture program for rain barrels.
Director Jon Brown noted that his rain barrels are still full from the winter and spring precipitation and suggested the possibility of other incentives.
Consequently, Erb created a conservation committee, composed of directors Brown and Kevin Scott, to consider revising the policy or incentives.
“But it has been under utilized so we are going to be looking at some sort of customer-based leak detection program for the near future,” Jimenez noted.
The district’s water production was up 17% in July compared to June, according to Jimenez’s operations report.
Water supply continues to be surface water, thanks to the bountiful precipitation this winter. Groundwater provided only 6% of July’s water compared to 40% in July 2022.
“The creeks are fine just the way they are,” Jimenez told the board.
Total 2023 water production, through June, was 15.2 million gallons, which is less than the same period in 2022 and less than the 10-year average for those months.
