With revenues coming in at about $1 million less than projected, unless something changes, the Pajaro Valley Water Management Agency will run out of money at the end of July 2010.

The agency reviewed its cash-flow model at Wednesday night’s PVWMA Board of Directors meeting held in the Civic Plaza. According to the latest cash-flow projections, the agency will run out of money in a year. The cash crunch is due to lower-than-expected water sales from its recycled-water plant, a drop in interest rates on money PVWMA has invested, and higher-than-expected instances — about 50 percent — of customers refusing to pay.

Lower-than-expected sales from the recycled-water plant accounted for $200,000 of the shortfall.

“We anticipated delivering about 3,000 acre-feet and will probably deliver about 2,200 acre-feet,” PVWMA General Manager Mary Bannister said.

Bannister said the facility has not yet reached its potential due to a leak in one of the holding tanks that reduced the capacity the plant could hold.

For the complete article see the 08-29-2009 issue.

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