Financial Condition Sound;
Rate Increase Kept Low
Despite an anticipated loss of property tax revenue and rising operating expenses, the Ojai Valley Sanitary District (OVSD) preliminary budget for 2008-2009 calls for only a 3.7% increase in the rate paid by customers for sewer service.
“I’m very pleased that we’ve been able to keep the rate increase to a minimal level, which is close to the Consumer Price Index (CPI) increase,” said John K. Correa, P.E., OVSD General Manager.
“Our books are balanced and our fiscal house is in order,” he said. “We have debt, but we’re in good shape financially. Barring any unforeseen circumstances, I believe we’re on track for small rate increases like this one in the years to come. Because operating costs are always rising, rate increases are inevitable. But our goal is to keep them as low as possible.”
For the 2008-2009 fiscal year, it is anticipated that the State of California will strip away 70 percent (more than $300,000) of property tax revenue traditionally depended upon by the Sanitary District.
Correa explained that the District was nevertheless able to keep the rate increase low primarily because it was able to get a much lower-than-expected interest rate on last year’s borrowing for collection system upgrades deemed essential to protecting the environment in future years. That, along with supplementary money taken from the Rate Stabilization Reserve Fund, enabled the District to keep the rate increase low..
Prepared to Deal with What Future Brings
There are some uncertainties looming. The State budget will probably not be completed until August or September, and industry observers speculate that the State might end up taking away all of the property tax revenues from districts such as OVSD. If that happens, the District might have to dip further into reserves to keep the rate increase at 3.7%
Another uncertainty is whether new environmental requirements will compel potentially expensive upgrades to the District’s Wastewater Treatment Plant. District officials are anticipating some changes, but are unable at this point to project the extent or cost of them.As with all public agencies, private businesses, and individual households, costs continue to go up every year for the District. For example, the 2008—2009 preliminary operating budget calls for:
- a 3.1% increase in wages
- a 7.0% increase in health insurance costs
- a 5.0% increase in electric utility costs
- Funding a new Retirement Health Insurance Trust.
“The District is committed to responsible fiscal management and our history bears that out,” said Correa. “Available resources are focused on maintaining services and programs essential to District facilities and improving the quality of service to the customers of the District with minimal rate increases.”
Ventura Avenue Project on Drawing Board
The Ojai Valley Sanitary District will soon begin a $4.5 million rehabilitation and realignment project on its sewage collection system in the Ventura Avenue area.
The upgrade project will replace pump station and force
main facilities installed in 1967 that have experienced
significant deterioration. The force main is the pressure
pipe used to carry wastewater uphill from the pump station
to the Treatment Plant.This project is a continuation of
the District-wide rehabilitation of the wastewater collection
system capital improvement projects deemed essential to
protect the environment by reducing the risk of preventable
sewage spills in future years.
Considering a Septic
System Conversion?
Is your septic system experiencing these problems of aging:
- Constant maintenenace and inspections
- Expensive upgrades
- Surface drainage
- Degradation of ground water.
The Ojai Valley Sanitary District has Financing available
for Septic System Conversions at one point above the prime
rat. For information call: 805/646-5548. |
