As mentioned in last month’s Bubbler, expenses we covered during the USDA Project construction resulted in a reimbursement at close of $1.921M. This allowed for internal BLSMWC distributions of $802K to a Restricted Reserves Fund, $546K to a Capital Asset Reserve Fund and $574K back into our Operating Account to offset a portion of our USDA improvement expenditures. A primary focus as we progress through 2021 will be to manage the potential liabilities against our reserves.

These liabilities include a few remaining USDA tasks estimated at $136K that could not be completed due to funding and/or schedule constraints. The tasks are tentatively planned for this summer and each will be reviewed by the board for approval. There are also a few fixed asset purchases identified as potential liabilities which include a new work truck at $45K, a used backhoe at $60K, and additional water capacity from CCWD currently in our estimate at $330K. Note that during May 1 through September 30, 2020 we exceeded our CCWD water capacity and received a waiver. If that higher usage continues to occur, we will be required to purchase the additional capacity. Discussions are currently underway with CCWD to determine an agreed upon rate structure and cost.

Finally, we also must account for our Asset Management Plan long term funding and its potential impact on future reserves. We currently have asset reserve funds set aside to cover the estimated allocations required for the first few years but need to determine the plan for the next 20+ years. This will be a focus of the LRPC over the next several months. The goal will be to manage our reserve assets and liabilities as effectively as possible to minimize any impacts to future operating budgets and rates.