Weott CSD Grapples with Staying Afloat After COVID Moratorium Leaves $70K in Unpaid Bills

green water rings around a two leaf sprout with a blue sky with white clouds in the background

Image from Weott CSD website. [https://www.weottcsd.com/]

The May 25th board meeting of the Weott Community Services District (WCSD) revealed a district with some tough financial decisions to make due to unpaid bills, collection hindrances, auditor-controller impacts, and an aging infrastructure. The district’s board and staff are committed to helping find solutions but in the end, they may have to raise rates to remain solvent.

Unlike some local water districts, WCSD does not obtain their water from the Eel River, instead they collect water from two sites to the west of the Eel River which are sourced from four separate creeks. The system is set up so that the water collected across the river from the town of Weott is gravity fed under the river and up to storage tanks above Weott, thus not relying on a pump station unless levels are extremely low.

As efficient as the system currently is, it, like most of the rural infrastructure, is aging. As inflation impacts everyone, maintaining and repairing the WCSD is costing more every year. From rising electricity bills to gas prices, it all adds up, leaving the solvency of the WCSD in question if things continue on this trend.

Exacerbating the financial issues facing the district that serves 134 customers, are unpaid bills totaling about $70K. Director Alan Aitken said that due to the moratorium on utility bills in place during the COVID pandemic, many of the district’s customers have not paid their bill in close to two years.

Administrative Manager, Julie Santibanez, said that she just recently was able to send out shut off notices after the moratorium ended, though the shut off process is quite cumbersome.

Ultimately, the district does not want to turn customers’ water off but sees the notice as a tool to encourage past due customers to pay their bill – something that has to be done to keep the district operational.

Last month the district had close to $20K in expenses but only collected $10.6K in revenue of the approximately $16K in invoices mailed out, leaving them a loss of over $9K for the month. Part of that was due to the way the district’s payroll billing dates fell and a couple one-time expenses that are not considered monthly expenses. However, WCSD General Manager Gary Neumann said that the overall trend year to year is that the district is not bringing in enough revenue to keep up with the rising expenses. Add to that trend, two years of non-payment, and the WCSD finds themselves in a precarious position.

Santibanez told the board the district will be receiving around $13K in payments through the California Arrearage Payment Program (CAPP) that helps those impacted by the pandemic pay past utility bills. That will still leave the district with around $57K in owed revenue yet to be collected.

The collection process in itself is not that straightforward. One of the bills on the April accounting was for a $731.37 bill to the Times-Standard for a public notice of a lien on a residential property for past unpaid balances. “It costs money just to collect money,” Board Vice-Chairperson, Louis Iglesias said.

Bill SB 998, named the Water Shutoff Protection Act, was drafted in 2018 and passed in February of 2020. The bill lays out the steps that districts with over 200 customers have to take before they discontinue water service to residential hookups. It doesn’t allow any district to discontinue water service for non-payment until the bill is 60 days past due. The WSPA also mandates that payment arrangement options be given to customers and be readily available on the district’s website if it has one. There are also restrictions on discontinuing service to customers with medical needs or financial hardships.

The Water Shutoff Protection Act does not apply to districts with less than 200 customers, yet the WCSD is operating within those guidelines even though they only have 134 water customers.

In addition to unpaid bills and rising costs, the district is paying interest on a loan they have paid off but has not been processed by the Humboldt County Auditor-Controller’s Office according to Santibanez. Payments for a loan that the district had through the State Water Resources Control Board, go through the county’s Auditor-Controller’s Office. Santibanez said the final payment was sent to the county but because of the backlog at the A-C’s office, the payment has not been sent to the State Water Resources Control Board.

Iglesias asked what will happen when the state “comes looking for payment”. Santibanez explained that she had been in touch with the state, and they were aware of the situation and gave Santibanez payoff schedules with amounts based on when the payment is made from the Auditor-Controller’s office. Iglesias asked if that meant that the district would be charged interest for the payment not being posted in a timely manner, Santibanez said they would.

“That’s a big deal,” Iglesias exclaimed. “Because of the …county controller that is not doing the job the person is supposed to be doing, this little district now is having to pay interest on loans that have already been paid off!”

Santibanez agreed stating, “It’s not much [in interest] but it’s something.”

The frustration of the board loomed as they collectively feel that their hands are financially tied both with the Auditor-Controller and with the collection of past due revenue. Aitken said they don’t want to raise their rates, but at some point, they’re going to need to in order to continue providing water and sewage services to the community. Currently the base rate for water and sewage service is $104 monthly.

Neumann said the district is looking for other ways to fund repairs and infrastructure needs. He said they have applied for a grant to replace a 67K gallon water storage tank that was constructed of cinderblock. The grant process is long, but the staff appears committed to finding ways to keep the district’s expenses low while maintaining infrastructure integrity.

Iglesia said that Neumann found a consulting firm willing to do ecological studies on the wastewater treatment plant, pro-bono. Neumann said those studies could easily run as high as $100K.

The staff and board are not unsympathetic to the financial hardships facing their customers, opting to work on payment plans and often waving reconnection fees, understanding that adding an additional charge for someone already struggling to pay their bill doesn’t make a whole lot of sense. However, for the district to remain operational, they must collect revenue for the services provided.

Aitken said he would like to see more community involvement, especially from the younger generation living in the community. “The only time they show up is when they’re upset,” he explained, leaving the job to the older generation. “I’ll be 70 this year, trying to do my civic duty. The young people just aren’t interested and the older people are sadly passing away.”

The lack of younger community residents willing to volunteer for board positions is not exclusive to the Weott Community Services District, but it is interesting to note as the district faces some challenging decisions that will affect the entire community, young and old.

The Weott Community Services District’s board meetings are held on the fourth Tuesday of every month, except for December. The meetings begin at 7 p.m. and are located at the Weott Community Center at 175 Lum Street in Weott. Community members are encouraged to attend. 

This article is written by Lisa Music, a local freelance journalist. To reach Lisa about tips, questions or comments, email her at [email protected]

Reporting for this article was funded by the Humboldt Journalism Project, a DreamMaker Project of The Ink People. To donate to the Humboldt Journalism Project, click here.

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16 Comments
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Corporate Serfdom
Guest
Corporate Serfdom
1 year ago

It’s a tough time for everyone.

People need to conserve at the tap

People who understand nothing is guaranteed in life, can just kick the can down the road.

We really need to stop sending money overseas.

edited for content
Guest
edited for content
1 year ago

Yep, once we’ve settled our differences at home (one way or another), eradicated the Communists, Marxists, Socialists and the rest of the enemies of our Constitution from this “shining city on the hill”, ensured our borders are secured and rebuilt, and once we’ve upgraded our infrastructure (infrastructure used by all is the only example of General Welfare for which the peoples taxes may be used).

Then, and only then, may our elected officials ask us US citizens for permission on whether we want to help other countries.

“Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.” John Adams

“To take from one, because it is thought that his own industry and that of his fathers has acquired too much, in order to spare to others, who, or whose fathers have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, — the guarantee to every one of a free exercise of his industry, and the fruits acquired by it.” Thomas Jefferson

Last edited 1 year ago
rollin
Guest
rollin
1 year ago

Amen

rollin
Guest
rollin
1 year ago
Reply to  rollin

“eradicated the Communists, Marxists, Socialists and the rest of the enemies”

Double Amen 

willow creeker
Member
1 year ago
Reply to  rollin

You are so disconnected from reality it hardly deserves a reply, but do you know that Thomas Jefferson was an educated, French wine loving liberal?

Larry Jetski
Guest
Larry Jetski
1 year ago

On my property, if I don’t do the work, or spend the money, I don’t get water. Weotters on the system all need to do something to keep the system going. It’s a shame there’s so much bureaucratic inefficiency built in. If you widen your angle of view a bit, the auditor controller problem almost seems like a symptom of a goofy process between the Water Board and the CSD, with the County floating in the middle. Why not just loan them money interest free? Run it in house, streamline the payment process, or just suck it up and not collect the interest because of your agency’s dumb process. Is there a universe where a regulatory agency can facilitate the mission: Getting the town clean dependable water?

Flat Woman
Guest
Flat Woman
1 year ago

Conserving at the tap…is good, but does not pay the bills. The water itself is not the issue here. It is about the infrastructure and the debt.

Misery loves company
Guest
Misery loves company
1 year ago

Conserve at the tap? Funny one. You must not get a water bill.

A basic hook up in any water service district is a complicated stack of fees and surcharges.

Your actual water usage impacts it some, if you enjoy gardening, but a base rate monthly water bill is typically not cheap around here. They run like $60-$120 before you even start showering or watering your roses! That’s just to maintain the hookup.

Claudia Johnson
Guest
Claudia Johnson
1 year ago

The Auditor controller Not doing her job again Very small district Need to stop having to pay interest on the loan they paid off Can’t wait for election day

dawni
Guest
dawni
1 year ago

Always easy to blame someone else, isn’t. I read that, “that payment (to the county) isn’t much, but it’s something”. The gist of the problem Is Not the Auditor-Controller but people not paying their bills.
If you believe voting in someone else as Auditor-Controller is going to seriously help the Weott water district, I believe otherwise.

I like stars
Guest
I like stars
1 year ago

The first step is to actually stop providing service to those who do not pay. Nothing is preventing that from being done.

jack bourne
Guest
jack bourne
1 year ago

This is the same story the WCSD has peddled for many years. The district has much mis managment, and whenever there is a problem they just raise the prices, i commend Alan Aiken for trying to hold the district together. And the unpaid water users need to pay their bills back. But myself and others do not support anymore rate increases. People are considering leaving weott because of the high costs of utilities. People who don’t even use the sewer services are being charged sewer bills. Citizens cannot pay 1200+ dollars a year, its too expensive.

Kay
Guest
Kay
1 year ago

Weott CSD is ran so poorly. They don’t get invoices out in a timely manner, they have a poor system for payments, and they also are known to pocket people’s cash payments. It’s awful.

Last edited 1 year ago
Canyon oak
Guest
Canyon oak
1 year ago
Reply to  Kay

The board is all volunteer, so if it is run poorly, that’s the communities fault.
You can be on the board if your in district, so be the change right?
And give the older generation a break..
Every college dork wants to count salmon or pull invasive weeds..
How bout volunteer for a board instead?
Do Something that actually matters!

Jen
Guest
Jen
1 year ago
Reply to  Kay

I agree sometimes we don’t get a bill for 2 months and then are charged late fees for the previous month. Our bill is almost always $200 or more a month and their have been occasions when we pay the bill and receive a notice that the balance is still due. Not to mention the inconvenience of being without water several days each year due to the same leak being repaired by the csd multiple times because of the faulty work done.

Misery loves company
Guest
Misery loves company
1 year ago

“…not bringing in enough revenue to keep up with the rising expenses. ….”

Oh the story of life in Humboldt since the collapse?

When a portion of a civilized population lacks for basic human needs and services that is a recipe for squalor and deteriorating social fabric. And then the line between the haves, and the have-nots, becomes grossly and inhumanely apparent.