The San Diego County Water Authority said Thursday it has adopted a $1.7 billion budget for the next two fiscal years that will keep its spending steady compared with the current budget.
What the agency calls the “all-in” water rate – which is what it charges customers like the city of San Diego – will rise by 3.6% for treated water and 3.3% for untreated water beginning in January.
The San Diego County Water Authority said Thursday it has adopted a $1.7 billion budget for the next two fiscal years and will keep its spending steady compared with the current budget.
What the agency calls the “all-in” water rate — which is what it charges customers like the city of San Diego — will rise by 3.6% for treated water and 3.3% for untreated water in calendar year 2022.
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.
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
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.
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
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%.
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
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.
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.
San Diego residents and businesses could see their sewage rates rise four years in a row, starting with a 5% hike in January 2022, under a package of proposed water and sewage rate increases that the City Council’s budget committee send to the full council Wednesday.
The council will hold hearings and vote in September on a package that also includes a water rate increase from the San Diego County Water Authority.
On June 17, the Santa Fe Irrigation District board approved the adoption of a program that will benefit the district’s agricultural water users.
SFID will now allow eligible customers to participate in the San Diego County Water Authority’s Permanent Special Agricultural Water Rate (PSAWR), a program that SFID Director Sandra Johnson said recognizes the value of agriculture by reducing water rates for growers.
As we head into summer, we look forward to the continued retreat of COVID-19 and a full return to baseball games, barbeques, and graduation celebrations.
We also take a moment to remember that those things we cherish about San Diego County are all based on a reliable supply of water. It is the foundation of everything we do in our semi-arid climate. That’s why I’m so pleased to report that we have reliable supplies through at least 2045, even during multiple dry years like this one. That assurance was part of the 2020 Urban Water Management Plan that the Water Authority Board of Directors recently approved.
The Board is also considering the proposed 2022 water rates, along with the budget for fiscal years 2022 and 2023 – a challenging task to say the least. The proposed two-year budget is $1.7 billion, a 0% change from the current two-year budget due to our continuing commitment to cost control. As usual, more than 90% of the recommended budget is for buying and treating water or building and financing infrastructure. This reflects our long-term strategy to invest in supply reliability to meet current and future needs of the San Diego region – a strategy that is paying significant dividends during the current drought hitting most of California.
Water Authority staff also proposed increasing rates and charges for member agencies by 3.6% for treated water and 3.3% for untreated water in calendar year 2022, attributable to more rate increases by the Metropolitan Water District, continued payments for past investments in supply reliability, and inflationary pressures on energy, chemicals, and construction materials.
Each budget and rates package undergoes a rigorous review process, as we steward ratepayer funds to ensure continued water supply reliability in support of our $253 billion economy and quality of life. This year’s budget process started in fall 2020 with internal analyses, and it continued with meetings with our retail member agencies over the past several months. The process continued this week with the Board holding a third budget workshop. We expect to vote on the budget and rates package, following any revisions, on June 24.
A final note: I thought you might be interested in this letter that I recently sent to Gov. Newsom to share my appreciation for his leadership navigating the complexities of the current drought and outlining some of our key policy principles. It’s gratifying that the governor has avoided the kind of one-size-fits-all regulations we faced in the last drought – and I encouraged him to stay the course with regards to letting local leaders determine the appropriate response for their areas.
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
The Coachella Valley Water District board voted Tuesday to approve up to five years worth of potential rate hikes, including steep increases for small homeowners beginning July 1.
“It’s never a joy to increase rates… but I look across the (Coachella) valley and into Riverside and I think we’re competitive,” Director Peter Nelson said.
While a few customers objected by phone and Zoom before the vote, and 166 written protests against the increases were received, a whopping 64,906 written protests would have been needed to stop the vote per state law.
The Coachella Valley Water District is expected to vote Tuesday on a series of hikes that could sharply raise some residential and commercial customers’ monthly water bills over the next five years.
The proposed hikes would mean an average family that uses about 20 ccf per month could see their bill rise from $32 currently to $48 by 2026, according to agenda materials. A ccf, or one hundred cubic feet, equals is 748 gallons of water.
In a major sign of California’s worsening drought, Santa Clara County’s largest water provider announced Monday that it is moving forward with plans to declare a water shortage emergency and to urge cities and water companies that serve 2 million residents in and around San Jose to impose mandatory water restrictions.
The Water News Network is San Diego County’s source for water news and information.
