'No Frills' for LVMWD

The board of directors of the Las Virgenes Municipal Water District adopted a $58.1-million budget Tuesday that will raise residents' water and sanitation rates. The 2010-11 fiscal year budget, which will go into effect on July 1, is $2.2 million less than the one for the current fiscal year.

A sample bimonthly water bill for a single-family residence using 70 billing units would increase from $152.69 to $158.37. Bimonthly sanitation rates for the 65,000 residents served by the district will increase from $102 to $108.

"In reducing the fee below what was adopted, the board is making a statement that the district is doing its best to control expenses,  but there are escalating costs and capital needs that cannot be deferred," said John R. Mundy, LVMWD's general manager.

"The district is mindful of the economy and of the pressures faced by many of our customers," he said. 

Due to the $4.8-million net savings from an outstanding bond, the district's $10.6-million working capital remains lower than that of fiscal year 2008-09, and the 2010-11 budget anticipates a further reduction of $5.6 million in reserves, or working capital. 

Outstanding issues are likely to affect future costs, Mundy said. Electrical power usage increases, further constraints on water supplied to Southern California from the north and possible expenses associated with the Tapia Water Reclamation Facility may require additional investment estimated at $8 million to meet state and federal requirements, he said.

"Our actions over the last year and the newly adopted budget reflect prudent decisions and expenditures that have been determined as necessary," Mundy said. "There are no frills."