HAGÅTÑA (The Guam Daily Post) — For the seventh year in a row, the Guam Waterworks Authority has been designated a low-risk auditee and was issued an unmodified “clean” opinion by independent auditors, according to a news release from the water utility.
GWA ended fiscal year 2022 with a $13.9 million increase to its net position, the release stated.
Total operating revenues for fiscal 2022 increased by $1.5 million, or 1.5%, compared to the prior year. But operating expenses also increased by $3 million due to an unanticipated $6 million increase in power, which was offset partially by decreases in most other expenses, including salaries and wages, water purchases and sludge disposal fees.
As of September 2022, GWA assets totaled $1.14 billion as the utility continued to invest in capital improvement projects, adding $69.7 million in capital additions to its property, plants and equipment, according to the release. Nearly 89% of the capital additions were for sewer treatment plant upgrades.
“Impacts to construction capabilities on Guam resulting from the pandemic, global supply chain issues and related inflationary pressures compounded by the impact of military construction affected GWA’s ability to attract contractors for some projects and resulted in increased construction costs for others,” the release stated.
Due to those factors, the water utility requested and received an extension to December 2025 to complete pending water reservoir repairs or replacements, the remaining element in a 2011 court order to GWA.
“GWA negotiations with (the U.S. Environmental Protection Agency) on a consent decree to address wastewater collection and conveyance systems have been ongoing and should conclude sometime before the end of the year,” the release added.
The water utility is implementing permanent district metered areas to monitor water supply and demand as part of its Water Loss Control Program. At the end of fiscal 2022, 18 of 36 areas had been established.
Two dedicated leak detection teams are working to curb water losses, according to the release. Some water line replacement projects are nearing completion and GWA has contracted engineering and design services for additional replacements identified in a five-year capital improvement plan, the release stated.
GWA received $12.4 million in American Rescue Plan funds to mitigate rate increases in fiscal 2023 and more than $8.6 million to invest in water and wastewater infrastructure in the Adacao area of Mangilao, the release stated.
Additionally, the Infrastructure Investment and Jobs Act created increases to U.S. EPA State Revolving Fund grants to GWA, of up to $26 million in fiscal 2023, which may continue through fiscal 2027, according to the release.
“A $2 million appropriation in the (fiscal) 2023 Guam budget act was directed at increasing funds for the Sewer Loan Revolving Fund to make low-cost loans available to residents connecting to the wastewater system,” the release stated.
A Guam Waterworks Authority crew works to replace a main water valve June 5, 2023, in Maite.
