Monday, May 18, 2020

AWA Responds to Financial Downturn due to COVID-19 Impacts

SUTTER CREEK, CA -  Amador Water Agency Directors on Thursday approved a short-term internal loan from the Agency’s Wastewater Participation Fee funds in the expectation of a cash flow shortfall in the Agency Water Fund by the end of the AWA fiscal year on June 30, 2020.


Amador Water Agency water revenues have been negatively affected by the COVID-19 pandemic. The statewide stay-at-home order in force since March 18, 2020, has caused some commercial customers to cease business; and other customers may be having difficulty making timely payments.


Directors approved the internal loan not to exceed $500,000, plus interest at the Local Agency Investment Fund (LAIF) rate, currently 1.787%. Funds would only be used to offset any actual shortfall and AWA staff expect to be able to repay the loan within six months with the gradual return of economic activity and summer water demand. There are no current wastewater projects that would require the Wastewater Participation Fee funds in the meantime.


The Board has also directed AWA staff to suspend all non-essential expenditures due to the decline in revenues during the current stay-at-home order and resulting economic downturn.


“This action reinforces our commitment to financial responsibility for the Water Agency. Based on Board direction, I only approve expenditures that staff considers to be essential and necessary for health and safety, on-going system operations and maintenance, regulatory compliance and contractual obligations,” said AWA Interim General Manager John Kingsbury.


AWA has modified operations in accordance with local health advisories. The Customer Service Desk and lobby are currently closed until further notice for the protection of the public and employees, and AWA has implemented “social distancing” practices for staff. AWA field operations staff are continuing to work throughout the AWA service area and ask the public to limit in-person interactions with field staff and maintain social distance.


AWA staff members remain available to assist customers during regular business hours via telephone at 209-223-3018 or email at



AWA Interim General Manager John Kingsbury reported to the Board of Directors that advertisement and recruitment of a permanent General Manager is underway and a candidate should be presented to the Board for approval and possibly in place by the end of July.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.