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San Diego County Water Authority-Budget-Water Rates-Drought

Water Authority Board Adopts $1.7 Billion Two-Year Budget, Approves 2022 Water Rates

The San Diego County Water Authority’s Board of Directors today adopted a $1.7 billion budget for fiscal years 2022 and 2023 – a 0% change from the current two-year budget – and approved water rates and charges for 2022, following a public hearing.

The all-in rate, which is a blend of fixed and variable rates, will rise by 3.6% for treated water and 3.3% for untreated water in calendar year 2022, due to more rate increases by the Los Angeles-based Metropolitan Water District of Southern California, continued payments for past investments in supply reliability, and inflationary pressures on energy, chemicals, and construction materials. Actual water bills will vary based on customers’ water use, along with factors unique to their local retail water agencies.

“I’m proud of this budget and rates package in an era of unprecedented challenges,” said Water Authority Board Chair Gary Croucher. “We have contained costs while benefitting from strategic investments in water supply reliability that protect the region’s $253 billion economy and 3.3 million residents from statewide drought conditions. This achievement is only possible due to collaboration with our member agencies, strategic guidance from the Board, and the dedication of agency staff.”

More than 90% of the two-year budget is for buying and treating water or building and financing infrastructure. Seven percent of the budget for Fiscal Years 2022 and 2023 funds the Water Authority’s operating departments. The budget increase for those departments is 2%, or $1.9 million, compared to the current two-year budget.

Urban Water Management Plan-2020-San Diego County Water Authority-San Vicente Dam

The San Diego County Water Authority Board of Directors May 27 approved the Water Authority’s 2020 Urban Water Management Plan highlighting a “water portfolio approach” that ensures reliable water supplies for the region through the 2045 planning horizon – even during multiple dry years. Photo: San Diego County Water Authority

Key initiatives during next two-year budget cycle

  • Long-term planning – The Water Authority’s Long-Range Financing Plan and the Water Facilities Master Plan will be prioritized. Both are critical documents for projecting the Water Authority’s financial future and providing the Board with flexibility. Phase B of the Regional Conveyance System Study will conclude, and the Board will determine whether to proceed. Another focus is developing water storage capacity in Lake Mead to provide additional drought resilience for San Diego County and other parts of the Colorado River Basin.
  • Controlling costs – The budget includes the elimination of seven staff positions, along with a reduction in outside services and minimizing travel. In addition, equipment replacement was evaluated for deferrals, minimizing the budget impact of day-to-day operations. As always, the budget is partly the function of water sales and water rates, which are both trending upward.
  • Capital improvements – The Water Authority’s Capital Improvement Program is the cornerstone of the agency’s efforts to ensure that regional water delivery and treatment systems continue to meet a variety of ever-changing demands. The agency will move forward on the highest-priority asset management projects, along with detailed seismic, hydraulic and cavitation analysis. Staff also will continue to enhance security systems for physical and cyber assets – a responsibility that grows as potential threats continue to expand.
  • Collaborating with member agencies – Water Authority staff in every department work closely with member agencies to support local efforts, from outreach and advocacy to budget and rate development – and those efforts will continue to be a priority. There are opportunities for collaboration both in joint projects and joint policy issues, such as advocating for local decision-making about drought investments and responses.
  • Communicating with stakeholders – Whether it be in the state Capitol or local chambers of commerce, the Water Authority will continue to share the region’s water story through a full range of engagement tools and creative tactics.

Although the Water Authority’s budget spans two fiscal years, the agency sets rates annually to manage changing conditions more effectively. The Water Authority developed its 2022 water rates in conjunction with an independent cost-of-service study to ensure rates and charges comply with state law, legal requirements, cost-of-service standards, and Board policies.

Drought-Safe, Supply Investments-Carlsbad Desalination Plant-drought

The San Diego region’s diversified water supply portfolio includes highly reliable, locally controlled and drought-proof supplies from the Claude “Bud” Lewis Carlsbad Desalination Plant. Photo: San Diego County Water Authority

Collaboration with member agencies

The Water Authority also worked closely with its member agencies to keep the proposed rates and charges at the low end of earlier projections.

In 2022, the Water Authority will charge its 24 member agencies an all-in rate of $1,523 per acre-foot for untreated water, or $49 more per acre-foot than they currently pay. Charges would be $1,833 per acre-foot for treated water, or $64 more per acre-foot than in 2021. (Note: An acre-foot is about 325,900 gallons, enough to serve the annual needs of 2.5 typical four-person households in San Diego County.)

The Water Authority’s overall rate increase is driven by multiple factors, including rising costs from its wholesale water provider, MWD. MWD increased its rates, including the amount it charges to transport the Water Authority’s lowest cost regional supply – high-priority, independent supplies from the Colorado River. Overall, MWD’s rates and charges for the Water Authority in 2022 will increase 3.9%.

Drought-Safe San Diego-San Vicente Reservoir-Drought-Water Supply Portfolio

The San Diego County Water Authority said June 21, that the region is protected from drought impacts this summer, and through 2045, despite continued hot and dry conditions. Photo: San Vicente Reservoir/San Diego County Water Authority

Strategic management

The water rates for calendar year 2022 include strategic withdrawals from the Rate Stabilization Fund. To reduce 2022 rate increases by approximately $65 per acre-foot, the Water Authority plans to draw $25 million from the agency’s Rate Stabilization Fund. The fund was created in 1990 to help avoid rate spikes, especially those driven by reduced water sales. The rate proposal also includes strategic management of the Water Authority debt portfolio resulting in $130 million in net present value savings from several refundings.

The 2022 rates ensure debt-coverage ratios that maintain the Water Authority’s strong credit ratings and minimize the cost of borrowing money for construction projects, an approach that saves ratepayers money over the long run. The Water Authority has senior lien credit ratings of AAA from Standard & Poor’s, AA+ from Fitch ratings and Aa2 from Moody’s.

For more information about the Water Authority’s 2022 and 2023 budget, and 2022 rates, go to pages 58 and 69 in the June Board packet.

Board Adopts $1.7 Billion Two-Year Budget, Approves 2022 Water Rates

June 24, 2021 – The San Diego County Water Authority’s Board of Directors today adopted a $1.7 billion budget for fiscal years 2022 and 2023 – a 0% change from the current two-year budget – and approved water rates and charges for 2022, following a public hearing.

The all-in rate, which is a blend of fixed and variable rates, will rise by 3.6% for treated water and 3.3% for untreated water in calendar year 2022, due to more rate increases by the Los Angeles-based Metropolitan Water District of Southern California, continued payments for past investments in supply reliability, and inflationary pressures on energy, chemicals, and construction materials. Actual water bills will vary based on customers’ water use, along with factors unique to their local retail water agencies.

Helix Water District Logo Square officers for 2021

Helix Water District Announces 2021 WaterSmart Landscape Contest Winner

Once an unused pool, now a water-wise backyard oasis. Helix Water District announced Rosalie Dosik of Mt. Helix as the winner of its 2021 WaterSmart Landscape Contest. The annual competition recognizes outstanding water-wise residential landscapes based on overall attractiveness, design, efficient irrigation and appropriate plant selection and maintenance.

Helix Water District Logo Square officers for 2021

Helix Water District Announces 2021 Lake Jennings Spring Photo Contest Winners

Helix Water District is proud to announce the winners of the 2021 Lake Jennings Spring Photo Contest, with this year’s first place in the adult category going to photographer Johnathan Bradley of Lemon Grove for his image titled Open Field.

Now in its 10th year, the contest drew 61 entries from throughout the county. This year’s theme was Life at the Lake, and each of the entries highlighted the unique beauty of camping, fishing, hiking, spotting wildlife and enjoying the view at Lake Jennings.

 

Vista Irrigation District Logo

Vista Irrigation District Adopts 2020 Urban Water Management Plan and Amended Water Supply Response Plan

Vista, Calif. — Vista Irrigation District Board of Directors adopted its 2020 Urban Water Management Plan (2020 UWMP) and amended its Water Supply Response Plan (WSRP). The 2020 UWMP details the district’s long-term planning efforts to ensure sufficient water supplies to meet existing and future water needs of its customers. The WSRP specifies water use efficiency and water conservation measures to be implemented during water shortage conditions resulting from drought and other emergencies.

Drought-Safe San Diego-San Vicente Reservoir-Drought-Water Supply Portfolio

San Diego Region is Drought-Safe This Summer

The San Diego County Water Authority announced June 21 that the region is protected from drought impacts this summer, and through 2045, despite continued hot and dry conditions.

Statewide drought conditions are highlighting the value of regionally and locally controlled water supplies in San Diego County. No shortages or regional water-use mandates are in the forecast, the result of three decades of strategic investments that create an aquatic safety net for San Diego County’s $253 billion economy and quality of life for 3.3 million residents.

WaterSmart San Diego

At the same time, Water Authority Board Chair Gary Croucher asked residents to continue embracing water-use efficiency practices that have become part of the regional ethic. Simple but important steps include turning off the faucet while brushing teeth, fixing irrigation system leaks, and using hoses with automatic shut-off nozzles.

“Thank you San Diegans for everything you have done to make sure that we have enough water to meet the region’s needs now and for decades into the future,” said Croucher. “You have invested through your water bills and your water-smart practices, and those efforts are paying off in tangible ways. The key this summer is to stay water-smart.”

Drought-Safe, Supply Investments-Carlsbad Desalination Plant-drought

The San Diego region’s diversified water supply portfolio includes highly reliable, locally controlled and drought-proof supplies from the Claude “Bud” Lewis Carlsbad Desalination Plant. Photo: San Diego County Water Authority

Diversified water supply portfolio

Key government, agriculture, business, and science leaders joined Croucher in thanking residents for their efforts, encouraging continued water-use efficiency, and marking the region’s progress over the past 30 years.

In the early 1990s, the county’s economy was crippled by drought, suffering 13 straight months of 31% supply cutbacks from the Water Authority’s wholesale water provider, the Los Angeles-based Metropolitan Water District of Southern California, which controlled almost all of San Diego County’s water.

Today, the picture is much different: The region’s diversified water supply portfolio includes highly reliable, locally controlled and drought-proof supplies from the Claude “Bud” Lewis Carlsbad Desalination Plant and the nation’s largest conservation-and-transfer agreement, which provides high-priority, low-cost water from the Colorado River. The combination offers significant protection against droughts and other emergencies so that the Water Authority’s newly adopted 2020 Urban Water Management Plan shows San Diego County will continue to have sufficient water supplies through the 2045 planning horizon, even during multiple dry years.

Drought-Safe “for the long haul”

“There’s no way around it: Our region’s economy runs on water – brewing, tourism, biotech, defense, farming and so many other key pieces of our economic engine require safe, reliable water supplies to function,” said Jerry Sanders, president and CEO of the San Diego Regional Chamber of Commerce. “We look to the Water Authority and its 24 member agencies to provide the fundamental water resources that keep us strong – not just for today, but for the long-haul.”

Drought-Pure Water San Diego-Supply Portfolio-Investments

By 2035, Pure Water San Diego will provide nearly half of the City of San Diego’s water supply using proven water purification technology to clean recycled water and produce safe, high-quality drinking water. Photo: City of San Diego

Pure Water San Diego

The region’s multi-faceted water portfolio strategy includes local projects such as Pure Water San Diego, the next major increment of water supply for the county. The City of San Diego expects its project to start producing 30 million gallons per day of drinking water in the next few years. By 2035, Pure Water will provide nearly half of the City of San Diego’s water supply using proven water purification technology to clean recycled water and produce safe, high-quality drinking water.

“By helping reduce the impacts of statewide drought on our communities and ensuring supply reliability, Pure Water is an investment that will create a more sustainable future for all of us,” said San Diego Mayor Todd Gloria. “Our changing climate is challenging us to develop new, creative solutions. Thanks to our long history of regional collaboration and innovation, we can say with confidence that San Diego is up to the test.”

Water Conservation-Drought-Water Supply Portfolio-WaterSmart

San Diego County ratepayers have conserved more than 1 million acre-feet of water over the past three decades, and per capita water use across the region has decreased nearly 50% since the devastating drought of the early 1990s. Residents have saved water by converting landscapes to drought-tolerant and native plants. Photo: Helix Water District

Regional water use cut by 50% since 1990s

San Diego County ratepayers have conserved more than 1 million acre-feet of water over the past three decades, and per capita water use across the region has decreased nearly 50% since the devastating drought of the early 1990s.

Widespread adoption of water-efficiency measures were not the only result of that drought. In fact, the biotech industry advocacy group Biocom California was founded in San Diego to help ensure that the Water Authority would never again risk the region’s economy by over-dependence on a single source of water. Today, Biocom California works on behalf of more than 1,400 members to drive public policy, build a network of industry leaders, create access to capital, introduce cutting-edge workforce development and STEM education programs, and create robust value-driven purchasing programs.

“Biocom California was founded on the issue of access to water – our members depend on reliable, constant access for sensitive research and manufacturing processes,” said Joe Panetta, president and CEO of Biocom California. “Water supply reliability and diversification in our region has given the life science industry a firm foundation and the confidence to grow and thrive.”

Agriculture industry makes “the most of every drop”

The San Diego region’s multibillion-dollar farming industry also has flourished thanks to a reliable water supply. Today, the county is among the most productive in the nation with more than 5,000 family farms, the most of any county in the United States. Innovative practices – including water-use efficiency measures – allow local farms to be productive by focusing on high-value crops such as ornamental trees and shrubs, bedding plants, succulents, and indoor plants.

“San Diego County farmers have done their part by investing heavily in water efficiency so that they can produce an amazing cornucopia of products,” said Hannah Gbeh, executive director of the San Diego County Farm Bureau. “Our members are stewards not just of the land, but of the water as well. They make the most of every drop through high-efficiency irrigation systems and other strategies.”

Climate Change and water supply

The changing climate means that San Diego County will need to continue to evolve to meet the water needs of the future through continued efficiency efforts, strategic investments, and scientific advances. That’s why the Water Authority and the City of San Diego are partnering with the Scripps Institution of Oceanography at UC San Diego to better predict atmospheric rivers and improve water management before, during and after those seasonal storms. Scripps’ Center for Western Weather and Water Extremes (CW3E) last year launched the Water Affiliates Group, which brings together cutting-edge science and hands-on water industry experience to enhance reservoir operations in light of the changing climate.

Drought-atmospheric rivers-science-climate change

Scripps Center for Western Weather and Water Extremes reports that more atmospheric rivers have made landfall on the U.S. West Coast in the first four months of Water Year 2021 compared to Water Year 2020. Graphic: Scripps Center for Western Weather and Water Extremes.

“It is vital that the Water Authority, the City of San Diego and our other affiliates are helping to improve modeling in ways that will continue to produce practical, real-world benefits for water managers statewide,” said Margaret Leinen, vice chancellor for marine sciences at UC San Diego and director of Scripps Institution of Oceanography. “With continued research we can utilize the latest science to develop strategies for mitigating flood risk and increasing water resilience through improved reservoir management. This will aim to decrease the impact of dry years by improving forecasts that lead to capturing more water produced by atmospheric rivers. Applying science to action will help protect San Diego County and the rest of California from droughts, as California’s climate becomes increasingly volatile in the future.”

For more information about water supplies in the San Diego region, go to www.sdcwa.org/investments-protect-san-diego-region-from-drought/.

Drought-desalination-water supply portfolio

The Water Authority added desalinated seawater to its supply portfolio in 2015 with the start of commercial operations at the nation’s largest seawater desalination plant – the result of a public-private partnership in northern San Diego County. Photo: San Diego County Water Authority

San Diego Region is Drought-Safe This Summer

June 21, 2021 – Statewide drought conditions are highlighting the value of regionally and locally controlled water supplies in San Diego County, where the San Diego County Water Authority today announced that the region is protected from drought impacts this summer, and through 2045, despite continued hot and dry conditions. No shortages or regional water-use mandates are in the forecast, the result of three decades of strategic investments that create an aquatic safety net for San Diego County’s $253 billion economy and quality of life for 3.3 million residents.

Helix Water District Logo Square officers for 2021

Helix Water District Student Poster Contest Winners Highlight Water is Life

Helix Water District honored local student artists for their winning Water Is Life posters at a virtual awards ceremony during Helix Water District’s board meeting on June 16, 2021.

Olivenhain Municipal Water District Logo landscape design workshops

OMWD’s “AAA” Bond Rating Reaffirmed as Board Reduces Budget by 2.67 Percent

Encinitas, Calif. — At its meeting this evening, Olivenhain Municipal Water District’s Board of Directors approved budget cuts following confirmation of OMWD’s exceptionally strong financial profile. The board was notified that Fitch Ratings, a global rating agency that offers independent credit opinions, has reaffirmed OMWD’s “AAA” bond rating with a stable outlook, the highest possible rating assigned by Fitch. The board also approved a revised budget for Fiscal Years 2021 and 2022 that saves over $1 million versus the originally approved budget.

Olivenhain Municipal Water District Logo landscape design workshops

OMWD Recognizes Local Students for “Love Water, Save Water”

Encinitas, Calif. — Winners of the annual “Love Water, Save Water” youth poster competition were recognized by Olivenhain Municipal Water District’s Board of Directors at its June 16 meeting.

Students from fourth grade classes in OMWD’s service area participated in this year’s competition. All three winners are from Stone Ranch Elementary School in 4S Ranch.

The first place winner was Norah Shin. Her poster features a faucet with a globe-colored water drop positioned between two hands making a heart.