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Grizzly Lake Resort Improvement District increases financial stability with RCAC assistance

Environmental Project Highlight

WHERE: Grizzly Lake Resort Improvement District (GLRID), California

PROBLEM: GLRID had a limited understanding of financial management, asset management, planning and financial statements. GLRID could not get an acceptable annual financial audit, and was operating in the negative and on the verge of solvency and liquidity problems.

SOLUTION: RCAC provided a financial analysis of current budget, financials, and water and wastewater rates; and designed a solvency financial turnaround plan for FY 2010-11.

GLRID was operating in the red and on the verge of insolvency when it requested technical assistance from Rural Community Assistance Corporation (RCAC).

The GLRID asked RCAC to analyze its budget and make recommendations about a new rate structure process. RCAC staff members worked closely with the board and general manager to analyze operating expenses and revenue, balance sheet, working capital, cash statement, and water and wastewater rates. As a result:

• Staff and board of the small system attended asset management software training and now regularly use the software to schedule equipment replacement.
• The GLRID board and staff have a better understanding of their financial statements and have the capacity to ask relevant questions.
• The utility implemented a three-year financial plan that stabilizes revenue (positive return), decreases expenses and provides for asset sustainability.
• The system has implemented an Asset Management Plan and developed a Capital Improvement Plan using EPA CUPSS.

The GLRID is now operating in the black and is well on its way to solvency.

February 2011

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