Announcements

Announcement

Wastewater and Money: Finding the Right Flow

Tuesday, November 28, 2023

Lately, two topics have dominated meetings at Lake Monticello: Aqua Virginia’s wastewater system and LMOA’s financial future. Both subjects affect the identity of the community as well as the wallets of its residents. The LMOA Board of Directors, staff, and various committees are planning proactively to protect property values, but the secret to a solution may lay with the Membership. Awareness, collaboration, and solidarity are key to protecting the Lake’s reputation and financial future.

At the association’s November Board meeting, LMOA President, Larry Henson, warned Lake residents that Aqua Virginia may be implementing a rate increase of 30% for water and 23% for sewer effective January 1, 2024, even though the State Corporation Commission (SCC) has not yet approved an increase. This unwelcome news comes in amid of a challenging budget season.

According to Tom Diggs, the chair of the Community Development Committee, Aqua can implement the rate increase ahead of approval. “Under SCC procedures, a utility can begin charging customers its proposed rates six months after its rate increase application is deemed to be complete,” Diggs said. “If the SCC approves the rate increase as submitted, it will be approved retroactively. If the SCC approves a rate increase of less than requested, the utility has to refund the amount it collected over what was approved. The manner and timing of that refund are specified in the SCC’s decision on the requested rate.”

Our Board President urged Lake residents to oppose Aqua Virginia’s price hike by submitting comments to the SCC as soon as possible at https://www.scc.virginia.gov/casecomments/comment/PUR-2023-00073. The case number is PUR-2023-00073.

Meanwhile, at the November Water Workgroup meeting, the Western Region Supervisor of Aqua Virginia, Jay Divers, gave a report of operational upgrades, which included (but not limited to):

The installation of Supervisory Control and Data Acquisition (SCADA) on five wastewater lift stations. SCADA is a combination of hardware and software that allows Aqua Virginia’s staff to prevent an overflow at five of the most problematic wastewater lift stations (there are about 55 lift stations in total). Divers anticipates five more lift stations will be fitted with SCADA by the end of 2024.

The placement of 10 smart manhole covers that detect potential leaks and alert Aqua Virginia. These covers can be moved to any of the 3000 manholes in our community to help Aqua Virginia’s staff identify problem areas. Divers claimed that two of the covers have already enabled the crew to identify a restaurant that is causing significant grease buildup.

According to Divers, grease buildup is a major problem in this area. For this reason, Aqua Virginia recently sent a notice to all Fluvanna County restaurants that use the company’s wastewater service. The notice states that Aqua Virginia will conduct grease trap inspections through a third party. “If a restaurant is not disposing of grease correctly, they will be given 30 days to comply,” Divers said. He also mentioned that several upgrades to the wastewater treatment plant have been or will be completed by the end of 2024. Lake Monticello residents can expect the results of an independent odor study by January 2024.

Prioritizing Property Value Protection

In addition to the concerns surrounding Aqua Virginia, the LMOA Board of Directors has faced a challenging budget season. More money is needed to keep the current variety of amenities open, but finding the right balance is not easy. LMOA has always been an amenity-based community that is willing to absorb some financial loss to keep amenities open. Member dues do not cover all costs, and revenue is required to bridge the gap and fund reserves. Budgets in the past few years have been based on the assumption that Operations generates the required additional income. However - due to inflation and the increased demands of a growing community - LMOA is currently spending more on Operations than it is making. Without careful planning, overspending will deplete reserves in the next decade, which goes against bylaws and ethical practice, and therefore, is not an option.

HOAs all over the country are utilizing proactive planning to combat inflation and prevent a future financial crisis. LMOA is doing the same. In a recent Budget Work Session, Board Treasurer, Mike Kelly, announced that he wants to put an annual dues increase on the 2024 ballot. Another possibility is to cut one or more major services. LMOA Staff believe it is important to gather as much feedback from its members as possible in order to find a fair solution that represents an evolving community. Staff are preparing a questionnaire to identify the community’s most valued services, and it will hold town hall meetings in the new year.

LMOA’s Proactive Planning

Currently, LMOA is renegotiating its golf, food & beverage, and pool contract to include penalties and incentives that are believed to improve performance with possible termination if targets are not met in the next year. The EC&C Department is also undergoing reorganization. LMOA’s Operations will cut another full-time position and reduce other staff expenses by $100K, which is believed to bring Operations to a minimal level. Other steps the organization has taken include:

Eliminated 4 admin and maintenance positions
Reduced LMPD by 4 Officers (2022)
Examined contracts and utility bills to secure savings and better pricing
Examined potential revenue streams
Minimized Reserve Funds (LMOA is not overfunding reserves)
Postponed non-essential repairs
Enhanced investment efforts
Implemented a more aggressive collection campaign, collecting $125K in outstanding due payments in 2023.

The Board has to approve the 2024 Budget by mid-December this year.

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Announcement

Wastewater and Money: Finding the Right Flow

Prioritizing Property Value Protection

LMOA’s Proactive Planning