FISCAL RESPONSIBILITY AND

EID

How Is EID doing?

EID Mission Statement

“We are a public agency dedicated to providing high quality water, wastewater treatment, recycled water, hydropower, and recreation services in an environmentally and fiscally responsible manner.”

Fiscal Responsibility and EID

Drought conservation status Water rights threatened $49 Ag vs. $829 residential water No drought in EID spending Next debt offering will increase rates

15% It takes three!

Drought conservation

We need to maintain vigilance

-- Everybody needs to help conserve That said:

-- The weather is a big factor (heat/rain)

-- EID is a big culprit/ 6,800+af leaks

-- Measurement unfair to residential customers who conserved 18% prior

-- Small farm $49 usage up 1,400 af

Water rights threatened

State board trying to overturn legal rights EID seeking litigation partners to protest if

pre-1914 water rights abrogated

EID expects 17,000 af of new consumptive water rights that will aid carryover storage

EDWPA seeking 40,000 af of new water rights although 60% is for new rooftops and 40% is for Agriculture…highly speculative as to whether project will be successful

$49 vs. $829 water

By CA law, rates must be cost-proportional Yet:

-- Agriculture and small farms pay $49 per acre foot of all outside water

-- Residential ratepayers pay $829 per acre foot for most all outside irrigation

-- Board split 2-3 as to acknowledging, much less addressing, this $49 vs. $829 rate differential

No drought in spending

Every Management spending proposal brought to EID board this year has passed 3-2, 4-1 or 5-0

June 9th meeting had $3 million of projects for a 100% cost-overrun bridge, vehicles, hydroelectric…all passed 3-2

Each million dollars spent brings us closer to next debt offering and next 15% additional rate hike

More debt = more rate hikes

One-third of rates go to pay for debt EID General Manager planning $65

million new debt $65 million new debt will require 15%

more rate hikes (on top of rate hikes for increased salaries, benefits and other inflation)

It takes three!

EID board has two fiscal conservatives putting interests of residential ratepayers first.

It takes three (of five) board directors to direct:

- Less spending

- Less new debt

- Less rate subsidies to special interests

- Less new rate hikes