Budget in Brief FAQ

How does the Water Authority receive revenue?

The Water Authority is a wholesale water agency that purchases water for 24-member agencies that provide water directly to approximately 97% of the residents of San Diego County. Revenue received from member agencies for the purchase of water represents approximately 67% of the Water Authority’s two-year budget.

What are the major components of the Water Authority’s budget?

Water Purchases & Treatment	$700,474	49%
Capital Improvement Program (CIP)	321,129	23%
Debt Service	280,394	20%
Operating Departments	87,715	6%
Hodges Operations	6,052	<1%
Equipment Replacement	1,220	<1%
Other Expenditures	20,449	1%
Total	$1,417,434	100.0%

How is the Budget established? What are drivers?

The major drivers in creating the budget are the Water Authority’s Board Strategic Plan, the goals of the Water Authority’s Five-Year Business Plan, water supply conditions, current economic conditions, and Water Authority policies (for example, operating fund reserve, debt service coverage, and rate stabilization fund policies).

What is the Water Authority’s budget process?

The General Manager bi-annually prepares and submits to the Board of Directors a two-year budget. The Board of Directors’ discuss and vote on the recommended budget no later than June 30.