2024 Annual Report

Change

Thriving in an uncertain environment

Leadership

New leadership paves the way for new era of water management

With new leadership at the helm, the Water Authority is focused on fostering a stable, collaborative approach to regional water management. During the last fiscal year, General Manager Dan Denham and an experienced team worked to balance rate stability, secure critical resources, and build partnerships to address ongoing water challenges. Initiatives including landmark water-saving agreements and strategic rate measures reflected a proactive stance on maintaining financial and environmental sustainability, ensuring reliable water service in an era marked by both climatic and economic shifts.

Dan Denham Appointed Water Authority General Manager

In August 2023, the Water Authority’s Board of Directors voted unanimously to appoint Dan Denham as general manager, succeeding Sandra L. Kerl, who retired two months earlier. Denham served the Water Authority for 17 years before he was appointed general manager, including a stint as deputy general manager, where he managed crucial programs such as the Metropolitan Water District and Colorado River initiatives. He also managed significant water transfer projects and played a key role in environmental and legislative advocacy efforts. Prior to joining the Water Authority, Denham served in various capacities at the City of San Diego. Denham’s priorities include enhancing relationships with member agencies, minimizing rate increases, resolving ongoing litigation with the Metropolitan Water District, and securing long-term water supplies for San Diego County. Denham committed to building on the Water Authority’s many achievements and addressing future challenges to ensure the continued stability of the region’s water system.

New Leadership Team Supports Board, GM Vision

As part of the new era in Water Authority leadership, General Manager Dan Denham assembled a new leadership team to guide the agency through a time of unprecedented change. These highly qualified leaders are pioneers in each of their respective fields:

Finance

The Water Authority focused on partnerships and innovative strategies to mitigate rising costs across the board in FY24, minimizing financial impact to ratepayers while maintaining the stability of the region’s water supply. A landmark agreement with the Imperial Irrigation District and Metropolitan Water District of Southern California contributed to both significant cost savings and larger conservation efforts on the Colorado River.

Top Stories in Finance

Water Authority Joins Partners for Major Money-Saving Water Transfer

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Second Straight Wet Year Drives Down Water Sales

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Board Approves Rate Increase to Cover MWD’s Rising Costs

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Agreement Allows for Fallbrook-Rainbow Detachment

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STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

Operating Revenues 2024 2023
Water Sales 598,596,228 624,080,766
Other Revenues 581,290 1,710,670
Total Operating Revenues 599,177,518 625,791,436
Operating Expenses 2024 2023
Cost of Sales 476,261,911 530,364,458
Operations and Maintenance 29,380,479 25,572,960
Planning 9,600,937 9,119,243
General and Administrative 24,236,082 21,458,830
Total Operating Expenses 539,479,409 586,515,491
Net Operating Income before Depreciation and Amortization 59,698,109 39,275,945
Depreciation and Amortization 66,812,721 66,333,231
Operating Income (Loss) (7,114,612) (27,057,286)
Nonoperating Revenues (Expenses) 2024 2023
Property Taxes and In-lieu Charges 19,935,864 18,670,817
Infrastructure Access Charges 48,230,322 47,418,366
Investment Income (Loss) 16,891,197 9,187,160
Settlement Proceeds 8,506,750 411,888
Grant Revenues 15,844,515 5,958,728
Desalination Shortfall Revenues 6,709 4,353,119
Other Income 366,336 255,967
Intergovernmental 12,982,212 12,816,816
Gain (Loss) on Sale/Retirement of Capital Assets 292,067 (5,712,848)
Gain on In-Substance Defeasance 385,455 -
Interest Expense (74,820,877) (80,915,023)
Debt Issuance Costs (134,039) -
Settlement Rebate to Member Agencies - (411,888)
Grant Expenses (16,123,393) (6,650,036)
Project Expenses Write-Off (7,669,261) (24,182,391)
Other Expenses (9,179,579) (5,186,875)
Total Nonoperating Revenues (Expenses) 15,514,278 (23,986,200)
Income (Loss) Before Capital Contributions 8,399,666 (51,043,486)
Capital Contributions 2024 2023
Capacity Charges 18,789,425 21,054,200
Water Standby Availability Charges 11,282,060 11,215,611
Contributions in Aid of Capital Assets 2,464,639 8,885,318
Total Capital Contributions 32,536,124 41,155,129
Income (Loss) Before Extraordinary Item 40,935,790 (9,888,357)
Impairment of Intangible Asset - (36,538,760)
Changes in Net Position 40,935,790 (46,427,117)
Net Position at Beginning of Year 1,563,579,553 1,610,006,670
Net Position at End of Year 1,604,515,343 1,563,579,553

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STATEMENT OF NET POSITION

Assets 2024 2023
Current Assets:
Cash and Investments 133,742,304 153,102,577
Restricted Cash and Investments 114,620,923 61,460,631
Water Receivables 121,079,730 105,865,746
Interest Receivable 1,555,600 1,681,545
Taxes Receivable 1,245,332 1,261,361
Other Receivables 11,000,325 13,529,953
Inventories 150,548,276 98,103,617
Prepaid Expenses 2,358,743 3,862,726
Total Current Assets 536,151,233 438,868,156
Noncurrent Assets 2024 2023
Cash and Investments 82,295,778 88,065,762
Restricted Cash and Investments 35,632,198 112,040,993
Advances to Other Agencies 7,303,651 11,575,149
Retention Receivable 1,741,474 1,822,389
Long-Term Loan Receivables 7,470,289 7,809,847
Net OPEB Asset 1,393,012 1,703,953
Capital Assets:
Non-Depreciable 140,066,072 106,622,732
Depreciable 3,181,341,404 3,240,282,527
Total Noncurrent Assets 3,457,243,878 3,569,923,352
Total Assets 3,993,395,111 4,008,791,508
Deferred Outflows of Resources 2024 2023
Deferred Loss on Refunding 5,206,658 6,045,662
Pension Contributions Subsequent to Measurement Date 9,782,792 9,999,202
OPEB Contributions Subsequent to Measurement Date - 293
Deferred Actuarial Amounts Related to Pensions 18,692,809 16,783,942
Deferred Actuarial Amounts Related to OPEB 1,240,633 1,238,287
Total Deferred Outflows of Resources 34,922,892 34,067,386
Liabilities 2024 2023
Accounts Payable and Other Liabilities 106,439,383 94,779,014
Interest Payable 17,681,987 18,062,993
Construction Deposits 177,177 342,448
Short-Term Liabilities 245,000,000 245,000,000
Current Portion of Long-term Liabilities 73,434,364 61,692,290
Unearned Revenue 6,075,716 7,984,051
Total Current Liabilities 448,808,627 427,860,796
Noncurrent Liabilities 2024 2023
Long-term Liabilities 1,878,080,392 1,962,492,349
Net Pension Liability 90,512,623 81,836,796
Total Noncurrent Liabilities 1,968,593,015 2,044,329,145
Total Liabilities 2,417,401,642 2,472,189,941
Deferred Inflows of Resources 2024 2023
Deferred Gain on Refunding 5,784,030 6,329,298
Deferred Actuarial Amounts Related to Pensions 197,912 321,697
Deferred Actuarial Amounts Related to OPEB 419,076 438,495
Total Deferred Inflows of Resources 6,401,018 7,089,490
Net Position 2024 2023
Net Investment in Capital Assets 1,262,555,471 1,228,424,761
Restricted for Construction Projects 13,107,206 21,024,338
Restricted for Debt Service 1,088,102 834,037
Restricted for Net OPEB Asset 1,393,012 1,703,953
Unrestricted 326,371,552 311,592,464
Total Net Position 1,604,515,343 1,563,579,553

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CASH AND INVESTMENTS

As of June 30, 2024 and 2023, Restricted Cash and Investments Balances Were as Follows 2024 2023
Debt Service Reserve 22,934,025 22,679,650
CIP/Bond Construction 114,620,924 130,284,403
Pay-As-You-Go 12,698,172 20,537,571
Total 150,253,121 173,501,624
As of June 30, 2024 and 2023, Unrestricted Cash and Investments Balances Were as Follows 2024 2023
Operating 134,922,231 160,946,414
Rate Stabilization 78,540,740 78,540,740
Canal Maintenance 712,665 484,147
Equipment Replacement 1,862,446 1,197,038
Total 216,038,082 241,168,339
Total Cash and Investments 366,291,203 414,669,963

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Read our General Manager's Adopted Multi-Year Budget for Years 2024-2025

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