Board of Directors Adopts Fiscal Year 2007 Budget

Tuesday, June 20, 2006

After holding a public hearing, the Western Virginia Water Authority Board of Directors voted to adopt the proposed annual budget for fiscal year 2007. This is the third annual budget for the Authorityl, and it provides for the reliable operation of the utility, continued commitment to replacing infrastructure, system improvements, and providing for growth while maintaining a healthy financial standing.

Operating and Maintenance expenses reflect the ongoing success of creating effeciencies within the organization, while ensuring the system is well maintained.

Capital Expenditures provide for the replacement of aging mains, improving the line capacity, meter replacement, growth of new service areas, and the replacement of fleet and capital equipment.

Water Fund debt will continue to decrease this coming year and will maintain a healthy debt service coverage of 1.67. The Water Pollution Control Fund will increase debt by $12 million for the Garst Mill System Improvements. The debt service coverage ration will be 2.02.

The budget includes mid-year rate changes previously outlined by the Board as part of the six-year rate equalization program for the City and County customers.

A copy of the adopted fiscal year 2007 budget is available at www.westernvawater.org or by contacting the Water Authority at 853-5700.