The Eldorado Area Water and Sanitation District is proposing a budget with several capital improvements and a larger contribution to its reserve fund.

The district will present its budget at 7 p.m. Thursday during a regular meeting at El Dorado Community School, 2 Avenida Torreon.

"We need to repay debts, maintain water-service levels, address urgent long-term repair and replacement, address strategic need for additional water resources, and satisfy applicable regulatory requirements," said Roberta Armstrong, district director and finance-committee chair.

The draft budget reflects the adoption of increased rates approved by the PRC for "interim relief" that went into effect in April and will be included on the June bills. These interim rates will be in effect until the final rate-review process is completed by the PRC, which is expected this summer.

In the meantime, the board projected water sales revenues at approximately $2.8 million — a $573,695 increase from last year with operating costs also increasing. The biggest change in operating expenses is the $202,000 jump from last year's budget for salaries and wages for up to three full-time positions, including a general manager and project manager. The positions have remained vacant for a year.

The district is required to submit a balanced budget to the state department of finance by June 1.

The draft budget meets all expenses and results in a projected net increase in the district's cash reserves of $158,260, according to a statement issued by Paul Butt, district financial consultant.

The district's fiscal year 2010 begins July 1, 2009 and ends June 31, 2010.



BY THE NUMBERS
Draft Budget 2010

• Projected revenues, $2.8 million
• Operating expenses, $2.5 million
• Salaries/wages, $230,000
• Revenue bond debt, $508,000
• Capital purchases, $20,000
• Capital improvements, $115,514