Jeff Hill Response to Question #3:

Note: Some of the current challenges the SLV Water District faces require large financial commitments on the part of the District, which will eventually need to be paid either from rate increases or grants. In light of that, how would you answer the following?

3.  Fire-recovery and infrastructure repairs will require substantial additional funding. What are your recommendations for how SLVWD should remedy this need?

For CZU fire recovery FEMA has informed the district that it will cover 90% of the costs. That is terrific news, but there will be short-term cash flow issues because contractors will have to be paid as the work is completed, and FEMA may take some time to reimburse the district.

The district has already taken out a short-term financing and implemented a 5-year rate increase to cover some of this gap. However, based upon current engineering estimates of the total cost, this will not be enough financing and we will have to look at additional short-term financing to cover the gap between contractor billing and FEMA reimbursement. It is likely that we will need a new estimate of the District’s share of the ultimate costs.