The Domestic Water Budget includes $5 million in spending cuts and a 9? increase to the domestic base rate. The typical residential customer will see their average monthly water bill increase by $1.98.
"After careful analysis and discussions with management, I am pleased to present a budget for the 2010-11 year that includes a minimal rate increase and carefully chosen spending cuts that will not impact the high level of service we are proud to offer customers," said Steve Robbins, CVWD general manager--chief engineer.
Over the past two years CVWD has made nearly $10 million in spending cuts through the following:
- reduction in overall staffing by 60 positions
- salary freezes for current employees
- deferred vehicle and computer replacements
- deferred system maintenance
- renegotiated contracts with vendors and consultants
- limited employee overtime, training and travel
- Additional savings have been realized by rescheduling capital projects to take advantage of decreasing construction costs and pumping water at night when electricity costs are lowest.
The proposed domestic rate increase helps cover increasing costs of providing domestic water service, particularly the rising costs of imported water and environmental mitigation. By far the largest cost increase is that of imported water.
"For example, our costs for the State Water Project have increased from $8 million to more than $40 million in the past five years. But, this is an unavoidable cost," said Robbins. CVWD imports water from the Sacramento Bay Delta and the Colorado River and uses it to replenish the groundwater basin. This water is needed to ensure a long-term reliable water supply for the Coachella Valley.
At the same time CVWD faces higher costs, its revenue is down. The district has lost $19 million in revenue from interest income and property taxes over the past two years. To cover the deficit and minimize the impact on domestic water rates, the district used $17 million from domestic reserves over the past three years.
The budget discussion will take place during the board's regularly scheduled 9 a.m. public meeting on Tuesday, July 27 at the CVWD office at 85995 Avenue 52 in Coachella. The proposed budget will be made available to the public at www.cvwd.org on Friday, July 2.
The Coachella Valley Water District is a public agency governed by a five-member board of directors. The district provides domestic and irrigation water, agricultural drainage, wastewater treatment and reclamation services, regional storm water protection, groundwater management and water conservation. It serves more than 107,000 residential and business customers across 1,000 square miles, primarily in Riverside County, but also in portions of Imperial and San Diego counties.
Contact:
Heather Engel,
hengel@cvwd.org, (760) 398-2651 Ext. 2353
Jack Porrelli,
jporrelli@cvwd.org, (760) 398-2651 Ext. 2355
Abby Figueroa,
afigueroa@cvwd.org, (760) 398-2651 Ext. 2315