This graph illustrates the dramatic rise in annual debt payments for the Community Water Plan. Debt service (think mortgage) will go from the current $3.3 million to more than $12 million in 10 years. Today, charges for debt service and reserves already constitute more than 60% of the rate RWSA bills its two customers.
Where is the unrestricted reserve of $20.4 MILLION DOLLARS?
In 2002-03, in order to fund the $13 million Water Supply Plan of 2002, water rates were raised by 65% within two years.
When that plan was dropped, rates did not fall, instead have continued to rise.
Since 2002, RWSA has raised $32.5 million in net income above operating and debt expenses. Where is it?
RWSA NET INCOME (revenue - expenses)
- 2002: $ 161,663
- 2003: $1,936,843
- 2004: $4,358,527
- 2005: $3,885,859
- 2006: $3,971,459
- 2007: $6,213,742
- 2008: $5,852,065
- 2009: $6,073,334
TOTAL = $32,453,492
How much of this reserve was contributed by the city? If reserves are going to be used for the water supply plan, a cost share allocation must be determined and then should be applied to the reserves as well as future debt service on the plan. Currently and according to the 2003 cost-share agreement, the split is 27% city - 73% county.
Excerpts from the Charlottesville Sustainability Policy
Conservation – "conserve and protect our region’s natural resources."
Restoration – "to promptly and responsibly correct conditions that hinder sustainable environments."