Another Prop 218

Friday CSD held a meeting to discuss their financial shortfall and ways to cut costs and increase revenue to avoid running out of money before the end of this fiscal year.  The auditor told the board president Emery Ross that if CSD kept going the way they are now CSD would be out of funds by April 2011.  The board also directed Charise Reeves the CFO to start the Prop 218 process and to give the board several alternative rate and/or service charge increases for the board to review at the next meeting.  Folks, this is very troubling but not surprising news.

Some directors blamed ratepayers who protested the two recent Prop218 rate increases.  The board decided by a board vote, the ratepayers did not have a vote. Blaming others for what was their responsibility is wrong.  The first Prop218 meeting for a water rate increase, they proposed 4 yr increases and voted in a 2-year increase.  At the second Prop218 meeting for increasing the assessment on vacant lots, it was determined, that they had to do a ballot vote and so could not proceed with their Prop218 and it was stopped by a vote of the board again not the ratepayers.

Our current situation is not the fault of any one board, management or ratepayers but the cumulative bad decisions made by many over years.  In addition, laying blame at this stage of the game is pointless.  If we do not do a Prop218, we will not have water services in April.  If we have no water what are our homes and property worth?  Those of us with mortgages will find that we cannot get fire insurance. 

I am afraid that as ratepayers, we really do not have a choice here and we will have to face the situation.  What we can do going forward is attend meetings so that we know how the money is being spent before the fact not after.  

In closing, I have to commend President Ross (who is running for reelection) for having the intestinal fortitude to start and have this Prop218 process completed just before the election. 

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HOLD ON TO YOUR WALLETS

We are in for a bumpy and expensive ride. 

The “Majority of Three” (Barton, Punte and Day) on the CSD board has voted to increase stand-by fees on all undeveloped lots without meters to $240 per year (a whooping 400% increase on a 1-acre lot).  Moreover, this increase will go on their tax bill.  While those of us on metered lots will be paying the $27.00 service charge for at least another 6 months.  In addition, they intend to increase installation fees from $3500 to $6500 per installation.  These Capital Facilities Fees only require a board vote and resolution to enact.

 

On the surface, sounds like a good deal for residents and a bad deal for undeveloped lots.  However, if you look a little harder you will see that this is a bad deal for all.  If CSD can get away with a 400% increase on lots that do not have meters, nor use the water and doubling the installation fees on property owners then what do you think is coming down the road for those of us who do use the water.

The economy is circling the drain; foreclosures are at record heights with more to come and unemployment in Tuolumne County at 15.6%, Mariposa County 14.5% and statewide 12.6%.   How many of these undeveloped lot owners do you think are going to pay and how many will walk away from their property?  Our property values are already in the toilet and this will have an extremely negative impact on them. 

 

CSD thinks that 90% of the property owners will pay this increase and I think that they are not living in the real world on this issue.  They will be doing well if they get 2o% to pay.  What would be wrong with raising the rates in a tiered fashion over a period of years on these undeveloped lots?  For instance, they could raise the yearly rate by 10-20% per year over a designated time. This way the CSD stands a much better chance of being paid.

I was told by a reliable source that the employee that authored this is promised a 10% raise if this goes through.  Now I do know that when we had the last rate increase all the employees at CSD got generous raises.  So is this 10% raise rumor or fact?  You decide.

Has the board recouped the thousands of dollars spent for meters that do not work?  Has the board tightened their belts and made the necessary cuts in operating costs?  Did you think they should be planning to spend over ½ million dollars ($601,000) in 2010/2011 on salaries and benefits for 6 full time and 2 part time employees? Do board members deserve to collect $100 per meeting? My answer to all is a resounding NO!

To stop this insanity we need to protest this increase by sending in protest letters stating no to the increase and we need to pack the CSD on June 28.  Please send your letters of protest to the Hacienda (see sample ltr) or hand carry them into the meeting on June 28.

CSD to RAISE RATES…PARTIE DEUX

  

Yes once again the powers to be at CSD are going back to the well and are trying to enact the second phase of Prop 218.   In phase 2 of Prop 218 they intend to raise standby rates and new meter install rates appreciably.  However, wait here is the carrot they are going to tell you that if the second phase passes then they will not increase our service rate next year.  Really why am I not convinced?

Hmm…..

 

Do they realize that the economy is circling the drain, foreclosures are at record heights with more to come and unemployment in California is at almost 13%?  Apparently, they do not.

In their infinite wisdom, a “board majority” has banded together, spent money unwisely; giving raises and has done nothing significant to reduce CSD’s costs.  Clueless comes to mind here.  

We voted at the last CSD Board election hoping that this new board would step in and be fiscally responsible by making the hard decisions necessary for CSD to remain solvent.  We should have known better.  Sigh

Here are a few of my thoughts and questions on all of this. 

Why does the CSD office have to be open 5 days a week 8 hours a day? 

I know that many of the water districts scattered throughout the Sierras only have their offices open part time.  

Why is everyone working full time in the office except for one part time person to answer phones?  We only bill once a month, we have a payment box outside, answering machines are cheap and we do not have a land boom going on.  I totally understand why the outside crew is required on a full time basis and have no problem with that.  

Why did they give out raises during a time when they said they had no money? With so many out of work, my guess is that if they lost any employees due to no raises that there would be plenty applicants waiting to apply.   

Why did they not look into the information I gave them on the EDD Work Share Program over 10 months ago?

The Work Share program is for any employer who has a reduction of production, services, or other conditions that cause the employer to seek an alternative to layoffs. Check it out yourself at http://www.edd.ca.gov/Unemployment/Work_Sharing_Claims.htm 

Why should we give them more money when they have shown us that they cannot be fiscally responsible? 

Based upon their actions so far I have no faith in anything this board tells us.  I believe that the “Board majority” is in over their heads and unfortunately for us all they are voting in a block of three. 

CSD will be meeting on Monday May 3^rd at 1 PM and Phase 2 is on the agenda.  It is in everyone’s best interest to attend this meeting, as the board will be voting on this issue.  I hope that their fearless leader will not babble for an hour putting everyone to sleep.  

We gave them a rate increase last November and they have not tightened their belts at all, just back asking for more (must be time to give raises again). 

Until CSD has shown they are being fiscally responsible, the well is dry.

 

How is your day going?

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First you had trouble getting out of bed

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You had a stiff neck

Your new diet really doesn't seem to be working

You pulled a muscle when you tried to exercise

Your new hat looked better on you at the store

You keep losing things

You got caught in the rain at lunchtime

Then the lunch you had didn't seem to agree with you

You feel trapped

Uninvited guests showed up at dinnertime

On top of that you think you're coming down with the flu

Finally, you're alone in the house at night when you think you hear a noise in the basement

MAYBE TOMORROW WILL BE BETTER!! 

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Thought for the Day 

Handle every stressful situation like a dog.
If you can't eat it or play with it,
Just pee on it and walk away. 

TO ALL MY 'NUTTY' FRIENDS 

   Have a fabulous STRESS FREE Day!

RELAX!!!