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Financial Stability

The Crockett Sanitary Department receives the majority of its revenue for operations, maintenance, replacement and capital improvements from sewer service charges to its customers. A lesser amount is received from property taxes. Other revenue sources include grants, loans, capacity charges, interest on invested reserves, cost recovery and miscellaneous fees.

The financial stability of the Department results from a ten-year revenue program that foresees necessary adjustments in sewer service charges. The District Board has the authority to set sewer service charges as needed to provide collection system reliability and meet all regulatory requirements for environmental protection. Pursuant to Proposition 218, proposed sewer service charge increases are automatically effective absent a majority protest of property owners served by the Department.

The Department currently has no bonded indebtedness. Two State Revolving Fund low-interest loans were received by the Department in 2002 for large sewer projects. A third loan was received in 2006. Repayment of these loans will continue for twenty years.

The Department maintains limited reserves for emergencies, for sewer construction, for debt servicing and for revenue stability.