San Diegans are facing a tidal wave of rate increases in coming years for so-called drought-proof water — driven in large part by new sewage recycling projects coupled with the rising cost of desalination and importing the Colorado River.
While many residents already struggle to pay their utility bills, the situation now appears more dire than elected leaders may have anticipated.
The Santa Clarita Valley Water Agency unanimously approved a bond issuance that would raise $75 million by 2032 and a debt-financing plan that would saddle the water retailer with a little more than a half-billion dollars in debt, according to the agency’s plans.
The efforts are expected to help the agency address capital projects’ costs estimated in the neighborhood of $747 million through the life of the bond issuance, according to SCV Water’s financial advisers.
Interim City Manager Cynthia Kurtz sent an opposition letter to the Metropolitan Water District (MWD) over rate increases.
“Pasadena does not support rate increases of 8% and 8% for each of the next two years,” Kurtz wrote in the March 21 letter. “Over the past decade, Metropolitan staff has continuously communicated to its member agencies to expect rate increases of 3-5% per annum. And, Metropolitan has stayed that course and managed to operate within those parameters despite some of the most challenging drought years in recorded history.”
With the recession and the COVID-19 pandemic causing economic havoc nationally and across Southern California, the San Diego County Water Authority has adopted several cost-cutting strategies to reduce rate increases and it’s asking the Los Angeles-based Metropolitan Water District of Southern California to do the same.
As my two-year term as the Water Authority Board chair winds down, it’s my pleasure to update you on two important efforts that are underway for the betterment of the San Diego region.
First of all, our Board voted unanimously last week to spend a few more months discussing and assessing a study of a new regional water conveyance system to deliver our high-priority Colorado River supplies from the Imperial Valley. The work we’ve done over the past year shows the project would produce billions of dollars in potential savings over several decades – and we plan to use the next few months to outreach to stakeholder communities about this study, address questions raised in recent weeks and seek Board direction in November.
Ultimately, the questions are bigger than a new aqueduct – they are about how we sustain our economy and quality of life at a reasonable cost. A new multi-benefits conveyance system is one potential solution – but if not that, then we must grapple with equal intensity over whether it makes sense to pay ever-increasing costs (over which we have no control) to the Los Angeles-based Metropolitan Water District of Southern California to deliver our water for generations, or whether a plan based mainly on local water generation is financially feasible.
The other big issue this month is related – my request that MWD adopt rate relief measures this fall that reduce our water costs. Put simply, despite the recession and the COVID-19 pandemic MWD has not enacted the same kind of rate relief as the Water Authority, which froze hiring, deferred non-essential projects and significantly reduced travel – among other steps. In the end, we limited rate increases to 4.8-4.9 % for 2021 – and more than 60% of that is directly attributable to MWD.
Now, we’re asking MWD to take a similar approach, recognizing that we’re all in this together. We aren’t prescribing the strategies for MWD. We’re just asking that the nation’s largest water agency help its customers, and we’re pledging that any rate relief MWD provides will be passed directly to our member agencies. You can view the letter I sent to MWD at www.sdcwa.org/support-rate-relief-mwd.
I invite you to help move this conversation forward by encouraging MWD to find meaningful cost savings this fall that are reflected in its budget. Please take a moment to do so at www.sdcwa.org/support-rate-relief-mwd by submitting a letter of support for rate relief.
Dave Patterson’s letter to the editor in the June 6, 2019, issue of the Ramona Sentinelopens with the claim that “there is something in the water at the (RMWD) ….” Two articles written by Julie Gallant in the same issue provide evidence that “something” is a lack of candor. At the RMWD board meeting on May 14, 2019, Director Tom Ace asked if the $240,000 annual increase in San Vicente Sewer Service Area recycled water revenue was taken into account since the Bartle Wells Associates study originally recommended a 3 percent annual increase in the San Vicente sewer rate. The response was that the annual rate increase had been reduced to 1.5 percent (about $50,000).
Chula Vista, Calif. – The SweeetwaterAuthority authorized new water rates and charges at a public hearing on August 20. Authority customers will see an increase in their water bill for the first time since 2015.
“The budget and rate study process supports the Authority’s commitment to transparency and delivers on its mission to provide safe and reliable water to its valued customers,” said Governing Board Chair Teresa “Terry” Thomas. “The creation and adoption of the Authority’s rate stabilization fund will minimize future rate increases for our customers.”
The Water News Network is San Diego County’s source for water news and information.
Sweetwater Authority Logo 2019