I. CALL TO ORDER AND INVOCATION

The President called the meeting to order.

Present were:

President - Mr. David Bradshaw

Vice President - Mr. V. Wayne “Red” Taylor

Secretary - Mr. Gene Hayes

Director - Ms. Karen E. Gray

Treasurer Mr. Rodney Lara

General Manager - Mr. Don Hamon

Admin. Assist Ms. Annette Moody

Comptroller - Mr. Lajon Hutton

Superintendent Mr. Dave Ramon

II. DISCUSS BUDGET FOR FISCAL YEAR 2001-2002

Mr. Hamon introduced his presentation for the 2001/2002 operating budget. Briefly the goals for this year are:

· Present a balanced budget (i.e., Revenues minus Expenses = 0).

· Fully fund the bond debt service and protect bond covenants.

· Present a budget that is representative of the needs of the Water District to operate at the highest level of efficiency with an abundant supply of safe water for our customers, and remove wastewater and solid waste in an effectual, lawful and professional manner.

· Simplify the budget process.

· Continue and fund a three-year Special Projects Budget for capital purchases and projects. This has been increased to a six-year Budget.

Highlights for this budget consist of:

· Residential Solid Waste is doing well

· Water main improvements will replace many feet of substandard mains in the District.

· Sewer outfall mains are once again targeted and being replaced in this budget.

· Code Enforcement’s new software and portable computer are causing back flow and cross connection prevention, Industrial users and grease trap inspections to become much more routine and documented.

· Anticipation that our customers will soon have the advantage of paying their bills online.

Forecast:

Development is increasing, actual, approved subdivision development will add about 35 new homes in 2002.

III. MEETING ADJOURNED

Mr. Hayes made a motion to adjourn. Meeting adjourned at 8:51 p.m.

______________________________

Gene Hayes, Secretary

Board of Directors