Watchdog for Ratepayers

By Darrell W. Gentry

Debt Reduction Strategies and Stabilized Water/Sewer Rates

We have approved a debt reduction plan that is designed over the next 10 years to lower debt by $30 MILLION. This action will assure that the Vallecitos Board is controlling costs and rates to reasonable rates. Vallecitos has a AA+ rating from Fitch and a AA rating from Standard & Poor's.

We have structured a strategy for water and sewer rates that will stabilize rates until 2017 without including a retail price component. In other words, the wholesale prices by Metropolitan and San Diego County Water Authority, our 2 suppliers, would be the only price increase in the future.

For pension and other benefits, the Board does not qualify for any pension benefits, while in office or after. We have restructured employee benefits and retirements so that employees pick up more of health care costs, retirement benefit and a greater share of social security costs. We have limited healthcare coverage to end at age of 65 and have funded a "capped" limit that District will pay for health care. Employees have the ability to purchase additional coverage in a cafeteria of healthcare plans. Pension plan is administered by CalPers, a third party organization that provides fudiciary responsibility and control of employee retirement accounts, NOT VALLECITOS BOARD>