Rate Increases Under Consideration: The board is evaluating significant water rate increases ranging from 5% to 9% annually for the next five years to fund critical infrastructure projects. These increases are necessary to maintain debt coverage ratios and fund a capital improvement program addressing aging water treatment plants and distribution systems. The current 4% annual increases have only covered about half of the needed infrastructure improvements, leaving substantial deferred maintenance.
Major Infrastructure Projects Moving Forward: The agency is proceeding with $19 million in financing for critical water treatment plant upgrades and reliability improvements, with construction expected to begin after November 2025. These projects include the Tanner Clearwater treatment plant, Ione reliability improvements, and Tank B replacement, all essential for maintaining water service capacity and quality.
Wastewater Rate Challenges: Wastewater customers face potential rate increases of 3-5% annually, with the 5% scenario requiring debt financing and still only funding 20% of needed capital improvements. The current wastewater system from the 1970s requires significant investment in lift stations, pipeline repairs, and system rehabilitation to prevent failures.
Grant funding totaling $3 million is being utilized for leak detection and pipeline replacement projects throughout the service area.
Pine Grove Community Service District is exploring dissolution and transfer of their 400 water connections to AWA within approximately one year.
The agency recognized four employees for obtaining advanced certifications in water distribution and cross-connection control.
County assessment data shows stable growth at 4.1% with 141 new homes added last year, though primary residences actually decreased.
Amador County Assessor reported declining primary residences over six consecutive years despite new home construction, indicating more weekend/rental properties.
The City of Ione's Howard Park turf replacement project is proceeding with AWA grant funding to eliminate irrigation water use.
WIFIA loan approval remains on track with 95% historical success rate after invitation to apply, potentially providing $50+ million in low-interest financing.
For questions or comments regarding water service, contact AWA at 12800 Ridge Road, Sutter Creek. The next regular board meeting will be held on August 14, 2025, where rate study scenarios will be presented with specific customer impact calculations.
