The Board of Directors will be adopting its operating and capital investment budget for the fiscal year ended Apr. 30, 2023
ATASCADERO — At its meeting on Apr. 13, the Atascadero Mutual Water Company (AMWC) Board of Directors will be adopting its operating and capital investment budget for the upcoming fiscal year ending Apr. 30, 2023. The budget includes a 5-year forecast of revenues and expenses.
The forecast indicates that a rate increase is needed to offset increasing operational costs for electricity, natural gas, water treatment chemicals, materials, and insurance. It is also needed to offset capital investment costs associated with the construction of a new booster station and rehabilitation of existing wells, valves, water services, and pipelines.
AMWC’s costs for compliance with government regulations and mandates has increased substantially for programs such as the Sustainable Groundwater Management Act, National Pollution Discharge Elimination System, Unregulated Contaminant Monitoring Rule, Urban Water Master Plan preparation, annual State Water Resources Board fees, among others.
In addition, AMWC anticipates incurring significant capital and operating costs for treating water to remove polyfluoroalkyl substances (PFAS) from wells that have concentrations of these contaminants above the response levels established by the California State Water
Resources Control Board in February 2020.
Due to the increased costs and expenses noted above, AMWC staff will be recommending that the Board adopt increases to water rates at its meeting on Apr. 13, 2022. The 5-year cash forecast prepared by AMWC staff indicates that a 7%± increase in water sales revenue is
needed to meet AMWC’s needs for working capital, resulting in a monthly increase of $4 for the average water bill for a single-family residential customer.
The rate increase will allow AMWC to continue to provide the excellent service its shareholders have come to expect, while maintaining water rates that are among the lowest in the county. The attached graph shows AMWC’s current and proposed rates.
Questions regarding the water rate increase may be directed to John Neil, General Manager, (805) 464-5351, or firstname.lastname@example.org .