Why were the rates and fees increased in 2009?
By law, the District must operate with a balanced budget. Rates and fees must cover the District’s Operating Expenses, including the debt service for the Revenue bonds used to purchase 37% of the utility, as well as ensure that the system is maintained and improved. Previous budgets had little funding left for Capital Improvement Projects (CIPs) and over time the ability to cover Operating Expenses was also eroded (owing to increased costs, inflation, etc.). While some CIP funding in the past has been obtained from State Grants via the Legislature and Governor, the amounts are always less than needed to correct system deficiencies and upgrade system components, and are not consistent in quantity each year. Further, most grants require some matching funds from the District. ($400,000 was received from State Grants in 2005; $200,000 in 2006; $500,000 in 2007; $50,000 in 2008; and zero in 2009). A portion of the rates and fees increase will fund critical CIPs – projected to be $200,000 to
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