Strategic stewardship of the Water Authority’s financial resources enables the agency to perform its core function of delivering a safe and reliable water supply and to embrace its core characteristics – pioneering, visionary, agile and driven. By adopting a two-year budget, the Board of Directors emphasized a continued focus on innovation and efficiencies. At the same time, the Board adopted some of the smallest rate increases in the past decade, maintaining its commitment to delivering safe water at a reasonable cost.

Estimated CY 2018 Wholesale Costs per Household

  • Two-Year Budget Prioritizes Innovation, Efficiencies and Stewardship

    The Board of Directors in June adopted a two-year, $1.58 billion budget for fiscal years 2018 and 2019. More than 90 percent of the budget was for water purchases and treatment, along with building and financing infrastructure. Projected cost increases for buying and treating water were largely offset by decreases in the Capital Improvement Program and stored water purchases; the budget projected that no stored water purchases would be necessary following the filling of the expanded San Vicente Reservoir. The budget focused on extending the useful life of facilities through careful asset management; safeguarding physical and cyber assets through improved infrastructure and technology security; developing balanced long-term water-use efficiency regulations; and implementing innovations to advance supply reliability, offset costs, and create more efficient agency operations.

    Board of Directors Meeting
    Water Authority Board of Directors
  • Rate Increases Held in Check for 2018

    By moderating upward pressure on water rates, the Board of Directors in June adopted rate increases for calendar year 2018 that were among the smallest in the past decade. Rate increases of 3.7 percent for both untreated and treated water accounted for higher rates and charges from the Metropolitan Water District of Southern California; a scheduled increase in water deliveries from the Water Authority’s independent and highly reliable Colorado River transfers; slightly higher projected water sales; and slight price increases for water from the Claude “Bud” Lewis Carlsbad Desalination Plant and the Colorado River. To minimize the effect of those factors, the Water Authority restructured its debt portfolio during the 2016-2017 budget cycle to reduce debt service payments by $78.3 million over the life of the refinanced bonds.

    San Diego County Water Authority rate increases
  • New Contract Offers Low-Cost Power

    A new era of low-cost power started in September when the Water Authority executed a contract that will help control energy costs for the region’s water ratepayers. The contract, authorized by the Water Authority Board of Directors in July, allows the Water Authority to purchase power at wholesale rates through the Western Area Power Administration. The Water Authority will initially sell its power from Western – which markets and delivers power from Hoover Dam in Boulder Canyon on the Colorado River – to the California Independent System Operator, which manages most of California’s large-scale power grid. Over time, the Water Authority plans to develop a way for Boulder Canyon power to be delivered directly to agency facilities or the Carlsbad desalination plant, which could reduce power costs by up to $300,000 a year.

    Hoover Dam
    Hoover Dam
  • Outstanding safety record benefits ratepayers

    The Water Authority ended the year with an excellent safety record that was nearly four times better than the industry average, indicating that the Water Authority had fewer work-related injuries and illnesses than most peer agencies. The Water Authority also maintains a workers’ compensation “experience modifier” that is significantly below the industry standard, and it completed the fiscal year without a single property claim. The figures not only reflect the Water Authority’s commitment to workplace safety and risk management, they translate into savings on insurance premiums – a benefit for ratepayers.

    San Diego County Water Authority Headquarters
    Water Authority Headquarters
  • Financial Statements

    Statements of Revenues, Expenses, and Changes in Net Position

    For the Fiscal Years Ended June 30, 2017 and 2016

    2017 2016
    Operating Revenues
    Water Sales 579,057,028 524,934,642
    Other revenues 3,727,332 3,240,007
    Total Operating Revenues 582,784,360 528,174,649
    Operating expenses
    Cost of sales 430,560,992 387,123,145
    Operations and maintenance 19,097,518 18,212,388
    Planning 9,040,200 8,651,233
    General and administrative 14,487,899 14,259,469
    Depreciation and amortization 62,014,987 59,493,116
    Total Operating Expenses 535,201,596 487,739,351
    Operating Income 47,582,764 40,435,298
    Nonoperating revenues (expenses)
    Property taxes and in-lieu charges 12,913,313 12,067,223
    Infrastructure access charges 31,144,704 30,434,370
    Investment income 2,237,947 5,985,490
    Other income 11,408,632 13,664,392
    Intergovernmental 11,452,308 12,213,866
    Gain (Loss) on sale/retirement of capital assets (727,294) 27,580
    Interest expense (95,533,730) (85,112,986)
    Debt issuance costs (352,544) (6,381,194)
    Other expenses (17,143,705) (10,557,021)
    Total nonoperating revenues (expenses) (44,600,369) (27,658,280)
    Income before capital contributions 2,982,395 12,777,018
    Capital contributions
    Capacity charges 21,080,540 15,838,800
    Water standby availability charges 11,091,285 11,088,377
    Contributions in aid of capital assets 219,325 791,486
    Total capital contributions 32,391,150 27,718,663
    Changes in net position 35,373,545 40,495,681
    Net position at beginning of year, as restated 1,535,174,603 1,496,572,700
    Net position at end of year 1,570,548,148 1,537,068,381

    Statements of Net Position

    June 30, 2017 and 2016

    2017 2016
    Current Assets
    Cash and investments $56,840,335 $75,806,910
    Restricted cash and investments 149,126,977 162,359,461
    Water receivables 102,593,505 99,959,059
    Interest receivable 918,016 1,054,733
    Taxes receivable 1,153,812 1,198,883
    Other receivables 13,731,984 14,835,074
    Inventories 96,983,153 100,630,252
    Prepaid expenses 4,640,248 4,635,729
    Total current assets 425,988,030 460,480,101
    Noncurrent assets
    Cash and investments 135,072,833 125,312,636
    Restricted cash and investments 23,411,934 72,185,172
    Advances to other agencies 650,477 214,436
    Retention receivable 823,942 2,313,364
    Long-term loan receivables 20,000,000 20,000,000
    Net OPEB asset - 2,264,891
    Capital assets
    Non-Depreciable 637,515,792 627,237,709
    Depreciable 2,853,904,858 2,863,737,737
    Total noncurrent assets 3,671,379,836 3,713,265,945
    Total assets 4,097,367,866 4,173,746,046
    Deferred outflows of resources
    Deferred loss on refunding 72,294,728 83,475,740
    Employer contributions subsequent to measurement date 16,163,814 6,198,142
    OPEB contributions subsequent to measurement date 324,982 -
    Deferred actuarial amounts related to pensions 8,560,959 -
    Deferred actuarial amounts related to OPEB 275,965 -
    Total deferred outflows of resources 97,620,448 89,673,882
    Current liabilities
    Accounts payable and other liabilities 85,111,259 128,024,234
    Interest payable 20,806,003 19,462,367
    Construction deposits 429,144 434,034
    Short-term liabilities 345,000,000 345,000,000
    Current portion of long-term liabilities 57,293,370 56,430,666
    Total current liabilities 508,639,776 549,351,301
    Noncurrent liabilities
    Long-term liabilities 2,041,933,667 2,109,274,211
    Net pension liability 71,135,027 62,547,589
    Net OPEB liability 170,141 -
    Total noncurrent liabilities 2,113,238,835 2,171,821,800
    Total liabilities 2,621,878,611 2,721,173,101
    Deferred inflows of resources
    Deferred actuarial amounts related to pensions 2,561,555 5,178,446
    Net postion
    Net investment in capital assets 1,138,160,938 1,148,155,974
    Restricted for construction projects 147,352,064 156,718,296
    Restricted for debt service 235,337 158,377
    Unrestricted 284,799,809 232,035,734
    Total net position $1,570,548,148 $1,537,068,381

    Cash and Investments

    June 30, 2017 and 2016

    2017 2016
    As of June 30, 2017 and 2016, restricted cash and investments balances were as follows
    Construction $2,663,522 $55,448,642
    Debt Service Reserve 22,523,325 22,448,531
    Pay-As-You-Go 147,352,064 156,647,460
    Total $172,538,911 $234,544,633
    As of June 30, 2017 and 2016, unrestricted cash and investments balances were as follows
    Operating $55,645,254 $49,282,921
    Designated for Rate Stabilization 135,072,833 125,312,636
    Designated for Equipment Replacement 1,195,081 2,893,890
    Designated for Stored Water - 23,630,099
    Total $191,913,168 $201,119,546
    Total Cash Unrestricted 53% 46%

Water Authority Credit Ratings

Moody’s: Aa2
Fitch: AA+