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Amendment to the Joint Venture Agreement with Lancaster County Water & Sewer District
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INFORMATION CONTACT:
Hyong Yi, Union County Water, Administrator, 704-296-4212
ACTION REQUESTED:
Amend the Joint Venture Agreement to allow for a Cash Shortfall Account (CSA)
PRIOR BOARD ACTIONS:
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BACKGROUND:
At the November 15, 2023, meeting of the Board of the Catawba River Water Supply Project, a motion was passed to recommend to the Boards of LCWSD & Union County that the Joint Venture Agreement be amended to allow for a Cash Shortfall Account (CSA). The purpose of creating an Operation Cash Shortfall Account is to:
• Have start-up money at the beginning of the fiscal year, eliminating the need for Union County and LCWSD paying in advance estimated water usage for July & August.
• The funds would be available in case of a budget deficit during or at the end of the fiscal year. This would avoid having to get Board approval to transfer funds from CRF to cover the deficit.
• CRWSP would take the previous year’s water usage for July & August multiply it by the new water rate to estimate the total amount needed for the CSA account. The account would need to be a minimum of $1.2 million.
FINANCIAL IMPACT:
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