The $227 billion budget proposed on Friday by Gov. Gavin Newsom includes $4.1 billion in spending on a suite of environmental initiatives meant to fight climate change, gird California against devastating wildfires, reduce smog, and bolster the adoption of clean vehicles on the state’s roads.
California’s plans to build a new tunnel to move water from the northern Delta to the thirsty, populous south of the state advanced a step Tuesday, when a key partner agreed to help fund some of the effort. The board of the Metropolitan Water District of Southern California, the largest treated water supplier in the nation, voted to pay nearly $59 million in 2021 and 2022 to the state Department of Water Resources to help move the project forward.
Programs to help renters facing eviction, additional homeless services, and new traffic signals are the additions that San Diego County supervisors are proposing for the budget for the new fiscal year. Supervisors recently heard two days of public testimony about the proposed $6.4 billion budget and are scheduled to deliberate and adopt the spending plan at their next meeting, scheduled for 2 p.m. Tuesday.
Encinitas, Calif. — Olivenhain Municipal Water District and Vallecitos Water District have entered into an agreement that will allow for cooperative use of Vallecitos’ Double Peak Reservoir site in San Marcos. The arrangement is expected to save OMWD ratepayers over $100,000.
With no increase to ratepayers for the foreseeable future, the Helix Water District’s governing board passed the district’s fiscal year 2020-21 budget earlier this month.
This year’s budget of $80.1 million is only slightly above last year, which was $79.5 million.
Following a public hearing, the San Diego County Water Authority’s Board of Directors today adopted rate increases for 2021 that are 30% lower than proposed last month following a series of refinements by staff. In addition, the Board directed staff to return in September or October with any further opportunities to reduce the 2021 rate increases, such as a decrease in rates set by the Metropolitan Water District of Southern California or the acquisition of federal or state economic stimulus funds.
As adopted June 25, the all-in rates charged to the Water Authority’s 24 member agencies will increase by 4.8% for untreated water and 4.9% for treated water in calendar year 2021. The new rates take effect January 1, 2021.
Rate increases are driven by reduced water sales, higher rates and charges from MWD and continued regional investments in supply reliability.
Since the staff’s rate proposal was released in May, the Water Authority re-evaluated several assumptions driven by COVID-19 recessionary pressures based on new economic data and forecasts. The Water Authority also funded some costs related to the Carlsbad Desalination Plant this year instead of in 2021. The 2021 rates and charges may be further reduced if MWD makes material changes when revisiting its budget and rates this fall.
“We’ve taken a series of strategic steps to minimize rate impacts during this pandemic-induced recession, despite numerous factors putting upward pressure on rates,” said Water Authority Board Chair Jim Madaffer. “At the same time, the Water Authority is maintaining its long-term fiscal stability while ensuring a safe and reliable regional water supply for residents and businesses that will be the foundation of our economic recovery.”
In 2021, the Water Authority will charge its 24 member agencies an all-in municipal and industrial rate of $1,474 per acre-foot for untreated water, or $68 more per acre-foot than they currently pay. Charges would be $1,769 per acre-foot for treated water, or $83 more per acre-foot than in 2020.
Actual figures will vary by member agency, and each member agency will incorporate costs from the Water Authority into the retail rates it charges to residents, businesses and institutions. (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.)
In addition, the rates package includes new Permanent Special Agriculture Water Rates, following the Board’s decision late last year to make the temporary program permanent. The program provides farmers with lower rates that correspond to a lower level of water supply reliability. In 2021, the untreated PSAWR will increase from its current level of $755 per acre-foot to $777 per acre-foot and the treated PSAWR will increase from $1,035 per acre-foot to $1,072 per acre-foot.
The fiscal pressures faced by the Water Authority include:
The Water Authority’s 2021 rates were developed 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, and strategic tools such as the Long-Range Financing Plan.
In addition, the 2021 rates are designed to ensure Board-adopted debt coverage ratios that support the Water Authority’s strong credit ratings and minimize the cost of borrowing money for construction projects. The Water Authority has credit ratings of AAA with a stable outlook from S&P, AA+ from Fitch, and Aa2 with a stable outlook from Moody’s.
The rates adopted by the Board are the result of strategic measures that include:
The Sweetwater Authority Governing Board approved the budget for fiscal year 2020-21 at its June 24, 2020 meeting. The budget does not increase water rates for customers and reflects more than $13M in reductions over last fiscal year. To achieve these savings, the Board worked closely with Authority staff to produce a balanced budget that minimizes the financial impact to customers.
The Coachella Valley Water District’s board of directors on Tuesday voted to approve a $376 million budget for the upcoming fiscal year, which begins July 1. The budget notably will not include rate increases even though CVWD — which has a service area of roughly 1,000 square miles and includes about 108,000 homes and businesses — had planned to implement one this year. The new math comes after the water district ripped up its previously proposed budget in May due to the economic slowdown caused by the response to the coronavirus.
In golf, I’m what you call a “hacker,” in that I’m a golfer with a handicap north of 30. Despite this, I like to get out with friends to chase the ball around and share the grief, and we enjoy playing at Mission Bay Golf Course four to five times a year. It’s a nice course, well-kept, and suitable for our level of play. In fact, I got my first and only hole-in-one on the 14th hole at Mission Bay.
State officials said that California isn’t backing away from prioritizing environmental protections, but the harsh realities of the economic meltdown require difficult compromises.
The Water News Network is San Diego County’s source for water news and information.
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