Board Passes New Budget, Approves Rates for 2020
The Board of Directors in June adopted a $1.7 billion budget for fiscal years 2020 and 2021. The new budget was up 5 percent from the previous two-year budget, due largely to increasing costs for water supply, supply reliability and infrastructure improvements.
The Board also approved an increase in wholesale water rates for calendar year 2020. Rates and charges for member agencies increased by 4.3 percent for treated water and 4.8 percent for untreated water. The increases are attributable to rate increases by the Metropolitan Water District of Southern California, continued regional investments in supply reliability, and lower demand that means fixed costs must be spread over fewer gallons of water sales. As part of its long-term financial strategy, the Water Authority plans to use $38 million from its Rate Stabilization Fund to minimize 2020 rate increases.
“This budget and rates package reflects our commitment to cost-conscious stewardship of the region’s critical large-scale water supply system. We’ve trimmed where we can, but inflation and other factors push costs higher as we maintain billions of dollars in assets while ensuring safe and reliable water supplies for future generations.”
Water Authority Board of Directors