News & Columns > Michael P. Neufeld > Arrowhead Manor Water Debt Paid by County

Arrowhead Manor Water Debt Paid by County

By Michael P. Neufeld
Wednesday, November 19, 2008

Cedar Glen, CA – San Bernardino County Supervisors have approved a contract with County Service Area 70 (Cedar Glen) to pay $910,520 from board elective funding. This will be for the payment on the outstanding loan balance to the California Department of Water Resources (DWR), relating to Arrowhead Manor Water Company.

Supervisor Dennis Hansberger led efforts to get the funding for the outstanding balance after Assemblyman Anthony Adams (R-Hesperia) successfully passed Assembly Bill 2680. This bill provides for financial relief from payments, penalties and interest accrued by the prior owner of the water company.

Long-time Cedar Glen resident Dick Pretzinger told RIMOFTHEWORLD.net the board's action was "beautiful. This is something that should have been all along and I'm grateful to everyone who pushed this through." Pretzinger serves as chairman of the Cedar Glen Project Area Committee (PAC) to work on redeveloping the area destroyed by the 2003 Old Fire.

Third District Supervisor Dennis Hansberger (Photo by Michael P. Neufeld.)

"This action," Hansberger stated, "wipes out the outstanding balance, and allows the county to proceed with the purchase of the district, and relieves ratepayers of the obligation to repay the private company's loan obtained under the California Safe Drinking Water Bond Law of 1976."

Hansberger, who asked Adams to introduce the legislation to reduce the debt to $910,520, after Arrowhead Manor's owners defaulted on the loan. The loan had swelled to nearly $1.9 million, including principal, interest, and late payment penalties.

Adams bill becomes effective January 1, 2009 and the county will now have until January 31 to retire the debt.

"It is the county's position that the obligation to repay the loan was that of the prior owner, not that of the property owners or the County," Hansberger has explained. "The county stepped in to maintain the water system and ensure the continuation of services to the community. We can now focus our money and attention on rebuilding the water system and the roads in the community."

After Governor Arnold Schwarzenegger signed AB 2680," Adams called the legislation a huge victory for Cedar Glen residents.

"After staving off fires and drought in the past few years," Adams stated at the time, "this community has endured its share of devastation. I'm pleased that the state could step up to ensure that obtaining clean, dependable and affordable drinking water is not a concern for residents."