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EID has been cutting expenses and employees

EDITOR:

EID’s financial metrics in the past decade show a history of rising revenues and rising costs during the tenure of Ane Deister as general manager, which ended on Dec.31, 2007. Following that the history is of dropping revenues and major cost cutting, first by Interim GM Tom Gallier, then on a more comprehensive scope by current GM Jim Abercrombie.

Here’s the numeric top-level summary for what has occurred since the term of Ane Deister as General Manager. Capital Improvement budget data cover four years under the new management (2009-2012), actual expense and revenue data are available for two years (2009-2010). An additional year expense and revenue data will become available when EID’s 2011 Comprehensive Annual Financial Report is published. Except for the five-year CIP numbers, all dollar citations are per year.

• Five-year Capital Improvement Plan (CIP) costs have dropped by $302 million (78 percent).

• The current CIP budget is about 1/5 (22 percent) as much as the 2008 CIP.

• Operating costs have been cut by $5 million (11 percent).

• Capital contributions (developer charges and new hookups) dropped by $17 million (92 percent), to $1.5 million.

• This had peaked at $47 million in 2004.

• Revenue from property taxes has dropped by $1.3 million (12 percent).

• Staff has been cut by about 30 percent. At the end of 2010 this was 79 employees (26 percent).

• Operating revenues increased $5.4 million (13 percent). $3.1 million was from increased hydroelectric revenues, $2.3 million from the 2010 rate increase.

Where critics claim “EID’s spending is out of control and getting worse,” they’re contradicting reality.

The truth is that EID’s spending has steadily and dramatically decreased between 2008 and now, while revenues also have fallen. Additional notes are posted in the sierrafoot.org section titled “What’s wrong with FIXEID.”

At Monday’s rate hearing in Cameron Park the public generally demonstrated a troubling degree of incivility and disregard of factual reality, much like that in the fixeid.org Web content. Many in the public belied claims that are simply untrue, some cited “old news” from many years ago that is no longer relevant.

Public meetings should be forums for calm and reasoned discussions. We need constructive cooperation, not identity-politics witch hunts to accuse and blame individuals or groups.

Paul Raveling
El Dorado Hills

Short URL: http://www.villagelife.com/?p=19047

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Posted by on Mar 30 2012.
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3 Comments for “EID has been cutting expenses and employees”


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  1. Only Alan Day to oppose the rate increase spoke for itself. Why the rate increase could not have been re-visited and re-structured now especially with gas prices soaring and the cost of living going up makes no sense. There is always room for improvement and the fact Alan Day was the only board director to step up and oppose is troubling.

    We can’t change the past but there was an opportunity for the board to work together to forumulate a new rate plan that would have helped EID customers who are ultimately paying for the board and GM Deister’s mistakes and this rate increase as it sits is unacceptable.

  2. I appreciate that someone has taken the time to present the facts while others have misrepresented them so they can get elected for personal and political reasons. Alan Day has to vote no on everything because that is what he was elected to do. He even voted no on spending funds for mandatory licensing renewal for the El Dorado Hills Waste Water Treatment plant. He’s like a Tea Partier that just thinks voting no on everything is how to run a government. It’s just not that simple. Thank you Mr Raveling for setting the facts straight.

  3. That’s funny. Mr. Day could have “voted” and won on at least one cost saving measure right out of the gate…EID funded healthcare for himself and his family to the tune of about $15,600 annually. But I guess he feels has earned full family medical coverage for his, not even partime job, of two meetings per month. I wonder if Mr. Day’s employees enjoy this level of health benifits?

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