Where: Paynes Creek, Tehama County, California
Problem: Sky View County Water District needs to replace failing water system infrastructure.
Solution: RCAC conducted a rate study and set up an accounting system so the newly formed utility can replace and maintain its system.
When privately-owned Ponderosa Sky Ranch Water System went into receivership in 2003, the community formed Sky View County Water District, which obtained funding in 2007 from RCAC’s Loan Fund so residents would continue to receive service. The water district serves about 87 active and 33 inactive connections. An additional 87 new connections may be added as vacant lots are developed.
The newly formed utility was anxious to get off on the right foot, so the board engaged RCAC staff to help ensure financial planning and management systems were on track. The district’s board plans to replace the water system’s failing infrastructure within three years, but lacked the capacity to perform financial analysis and capital improvement planning.
To make sure the new water system is financially sustainable, RCAC staff conducted a rate study to determine how water rates should be adjusted to cover costs for the next three years. RCAC staff will assist the board to present the proposed new water rates to customers. At the end of three years, another rate analysis will be performed to determine new equipment and construction costs.
RCAC staff also worked with the enthusiastic board to set up an accounting system that will help the utility manage its finances and provide quality service to its customers.
