Misleading Project Costs – When the cost of projects run over the original estimates by millions of dollars, ratepayers are left to pick up the tab with higher rates. There is no cap on the amount of debt that EID can incur.
The Forebay Dam expansion project was originally estimated to cost $9,000,000 and ended up being approved for more than $26,000,000.
The Folsom Intake project was budgeted at $17,700,000 in the 2020 Capital Improvement Plan and ended up being approved for $42,700,000.
The Folsom Intake project was budgeted to cost a total of almost $18,000,000, with 2/3 of the cost ($12M) coming from ratepayers and 1/3 of the cost ($6M) coming from developers due to increasing capacity from 16,000,000 gallons to 24,000,000 gallons. This equates to $2.25 per gallon of increased capacity ($18,000,000/8,000,000 gallons).
Ultimately, the project was approved for $42,700,000, with ratepayers paying 100% of the cost and developers paying 0%, even though the project increased capacity from 16,000,000 gallons to 19,500,000 gallons. This equates to $12.20 per gallon of increased capacity ($42,700,000/3,500,000 gallons)
The EID Board of Directors unaminously approved this bloated project on 2/24/20:
George Osborne, Division 1 – Aye
Pat Dwyer, Division 2 – Aye
Michael Raffety, Division 3 – Aye
Lori Anzini, Division 4 – Aye
Alan Day, Division 5 – Aye
The Main Ditch Pipe project was orginally estimated at $3,400,000 and ended up being approved for $17,700,000.