Amador County Grand Jury Report Highly Critical of Amador Water Agency
Below are selected facts & findings from the Amador County Grand Jury Report released on June 27, 2012.
- AWA has not effectively managed finances:
- By creating a continuous cycle of borrowing and repayment without reducing overall debt
- By committing to projects without adequate funding in place and without consent of ratepayers
- By carrying an unmanageable level of long-term debt
- AWA continues to make financial commitments to the Gravity Supply Line Project despite inadequate funding, ratepayer objections, and a
Prop 218 defeat.
- AWA cannot give an accurate accounting of monies spent to date on the GSL Project.
- Funds spent on the GSL have come from interdepartmental loans, AWA general funds and a $900,000 loan from the County
Board of Supervisors that has been extended twice. If the AWA does not receive a USDA grant to repay the County's loan,
the loan will be in default.
- On April 30, 2012, the AWA Board voted unanimously to spend another $50,000 on the GSL project.
- Ratepayers have rejected GSL projects in the past, including a successful Proposition 218 rate protest in May 2010.
- The proposed Community Facilities District for the Amador Water System appears to benefit a select number of developers and may not substantially
reduce loan debt, contrary to AWA's claims.
- Restricted funds have been intermingled with other accounts, despite the legal requirement to use them for a
specific purpose.
- AWA does not demonstrate commitment to public transparency, and a contentious and adversarial relationship frequently exists between
the AWA Board and the public.
- Due to the complexity of AWA's budget, it is difficult for the public to understand.
- The independent auditor found that AWA's bank accounts have not been "truly reconciled".
- Cost-cutting measures have had little to no effect on the long-term debt or the total liabilities of AWA.
- When AWA modified how it would accept Proposition 218 rate protests from its ratepayers, the Howard Jarvis Taxpayers Association
sent a letter of protest.
- AWA requested a $150,000 grant from the County Board of Supervisors for the Camanche Water District. The County Supervisors
made the grant, contigent on a rate increase.
The Grand Jury's recommendations include:
- The next Amador County Grand Jury (2012-2013) continue to investigate the Amador Water Agency.
- AWA should consider future projects only when there is adequate financing and funding available.
- AWA should focus on lowering long-term debt and liabilities before spending money they do not have.
- AWA should recognize its responsibility to ratepayers by standardizing its budgeting and accounting practices.
Download
the complete AWA portion of the 2011-2012 Grand Jury Report
Related Story: AWA Argues Grand Jury Facts, Findings and Recommendations