The Pleasanton City Council is set for an initial discussion on proposed increases to the city’s water rates, starting at 30% on Nov. 1, during a special meeting Tuesday night.
The public meeting will be held at the city’s Operations Services Center on Busch Road instead of the usual council chambers at the Pleasanton Civic Center.
The Board of Directors of Humboldt County Services District voted Tuesday for water and sewer rate increases, with two of five directors dissenting. Rates would eventually increase over the next five years by a total of 88% and start increasing Aug. 1.
In 1991, during a lengthy drought, the giant Metropolitan Water District of Southern California ordered huge cuts in supplies to the San Diego County Water Authority, which relied on MWD for 95 percent of its water. The authority resolved back then to steadily and sharply diversify its supplies, and it did with great success.
The communities of Fallbrook and Rainbow are requesting to join a water district based in Riverside, saying water in San Diego is too expensive.
However, those who oppose the move say it will leave others paying $200 million more for water over the next decade.
A vote is expected at the County Administration Center on Monday that would address the request from Fallbrook and Rainbow to get their water from an agency in Riverside County.
Ahead of next week’s controversial vote on the detachment of two North County water districts from the San Diego County Water Authority, several local leaders voiced their concern for how the proposed divorce could impact water rates.
Updated figures released July 3 show that disadvantaged communities, working families, farmers, and others across San Diego County will be forced to pay nearly $200 million more over the next decade for water service unless agencies seeking to leave the San Diego County Water Authority are required to fully cover their costs.
On July 10, the San Diego Local Agency Formation Commission’s board is expected to vote on a plan for the Fallbrook and Rainbow water agencies to leave the Water Authority, possibly with the inclusion of an “exit fee.” However, LAFCO’s figures are based on years-old data and flawed projections that understate the annual costs of detachment by at least 50%. Like everything else, costs related to water supplies have inflated significantly over the past three years.
LAFCO’s data don’t reflect the inflationary realities or the fact that the financial impacts of detachment will continue far beyond LAFCO’s five-year horizon, which does not reflect the actual lifespan of water infrastructure or the debt used to finance it. The LAFCO staff report acknowledges impacts will continue far longer than five years, suggesting that the rest of the county should pay for benefits to Rainbow and Fallbrook.
“From the start of this process, one of our top priorities was making sure that residents across the region aren’t harmed financially. It’s critical that ratepayers who are struggling to make ends meet, independent farmers, and small businesses aren’t forced to subsidize Fallbrook and Rainbow for years to come,” said Water Authority Board Chair Mel Katz. “We encourage the LAFCO Commissioners to require Fallbrook and Rainbow to fully cover their costs.”
LAFCO’s staff recommendation to approve the detachment proposals by the Fallbrook and Rainbow water agencies does not include substantive analysis of impacts to disadvantaged communities, or to agriculture in the Water Authority service area. Nor does it include environmental analysis required by law.
The LAFCO staff recommendation includes an exit fee of about $4.8 million a year for five years, which isn’t close to covering the actual costs that will be shifted to residents elsewhere in the county.
Here’s how much retail water agencies in the region may have to pay each year to cover the projected $18.9 million bill from Fallbrook and Rainbow leaving:
(Editor’s Note: The San Diego County Water Authority response to the proposals by the Fallbrook and Rainbow water districts to leave the Water Authority and annex into the Eastern Municipal Water District in Riverside County addressed the wholesale water agency’s concerns in September 2020. San Diego LAFCO’s website provides addtional details on the detachment process.)
South Coast Water District ratepayers will see an average increase of 7% in their water rates and a 12% average increase in their sewer rates starting July 1, following a governing board vote on June 22.
On average, starting July 1, residents may see a $5.79 increase in their water bills and an $8.99 increase in their sewer bills, according to South Coast Water.
After holding three public workshops on water, recycled water and sewer rate studies and conducting a revenue needs analysis, the district concluded the rate increase is necessary to provide “financial stability and funding reserves” according to a SCWD staff report.
In a prepared statement, SCWD said the rate increases are the result of the “implementation of critical capital improvement projects, meeting our debt service convergence to maintain our credit rating, and maintaining our reserves to meet the District’s targets.”
The San Diego County Water Authority board approved a 9.5% increase in wholesale water rates for its member agencies in 2024, citing the need to fund critical water supply projects.
The authority’s $1.85 billion budget for the next two years includes capital projects considered “critical for maintaining safe and reliable water supplies” in the event California returns to drought.
The impact of the wholesale rate increase on residential rates will vary based on the amount of water used by each of the 24 member agencies in the county, as well as individual usage by customers.
“The board and staff have worked tirelessly for months to minimize rate increases while supporting the reliability of our water supply,” said Board Chair Mel Katz. “Despite cost increases created by extraordinary inflation and depressed water sales, we have a budget that allows the water authority to do what it does best — provide the water that sustains our economy and quality of life.”
Officials blamed the lower water sales on an exceptionally wet and cool winter following years of drought.
The San Diego County Water Authority Board of Directors today approved wholesale water rates for 2024 following a public hearing and approved the recommended budget for the next two fiscal years. The budget and rates support continued work on numerous agency priorities, including capital projects critical for maintaining safe and reliable water supplies.
“The Board and staff have worked tirelessly for months to minimize rate increases while supporting the reliability of our water supply,” said Water Authority Board Chair Mel Katz. “Despite cost increases created by extraordinary inflation and depressed water sales, we have a budget that allows the Water Authority to do what it does best – provide the water that sustains our economy and quality of life.”
The Board approved increasing wholesale water costs for its 24 retail member agencies by 9.5%. Actual rate impacts will vary by agency based on their use of the Water Authority’s system and actual water purchases. Water rates paid by residents and businesses will also vary based on factors unique to each retail agency.
The budget and rates package was the most challenging in decades due to extreme inflation over the past year and depressed water sales due to cool and wet weather. Against that backdrop, the Board prioritized immediate ratepayer relief with a planned withdrawal of nearly $30 million from the Rate Stabilization Fund, which would bring the fund to its lowest level in more than a decade. The Rate Stabilization Fund was created in 1990 to help avoid rate spikes, especially those driven by reduced water sales following abnormally wet weather or mandatory cutbacks.
The Board also approved the staff recommended $1.85 billion budget for fiscal years 2024 and 2025, an increase of 5% from the current two-year budget due to higher costs for water, treatment and infrastructure maintenance. The budget prioritizes the following initiatives:
Approximately 90% of the Water Authority’s recommended budget is for buying and treating and delivering water, combined with debt service and infrastructure projects to ensure water is available when and where it’s needed. As in past years, the Water Authority’s Operating Departments – including all agency staff and day-to-day work functions – account for about 7% of the budget. The approved budget for fiscal years 2024 and 2025 increases spending by those departments by 1%, or $1.5 million, compared to the current two-year budget.
Public water agencies do not make a profit; all revenues are invested in protecting and providing safe and reliable water.
The San Diego County Water Authority Board of Directors today approved wholesale water rates for 2024 following a public hearing and approved the recommended budget for the next two fiscal years. The budget and rates support continued work on numerous agency priorities, including capital projects critical for maintaining safe and reliable water supplies.
