Metropolitan Water District Board approves 2005-06 budget

By: North County Times | Tuesday, June 14, 2005 9:53 PM PDT ∞

LOS ANGELES - A $1.69 billion spending plan was approved Tuesday by Metropolitan Water District's Board of Directors.

"This budget reflects our commitment to improve the reliability and quality of the Southland's water supplies and delivery capabilities to ensure that the region's water needs are met," said Metropolitan board Chairman Wes Bannister.

The 2005-06 spending plan is $86.4 million -- or 5 percent -- higher than the previous fiscal year, primarily because of increases in Metropolitan's capital improvement budget, officials said.

From July 1 to June 30 of next year, the capital budget is $500.6 million, covering more than 30 major construction contracts and 340 projects, according to MWD officials.

Key system improvements will include the construction of the Inland Feeder and two other new major imported water lines; expansion of a water treatment plant serving southwest Riverside and San Diego counties; and the addition of ozone treatment facilities at two district filtration plants, which are needed to meet increasingly rigorous water quality regulations, according to the MWD.

The budget includes $38.9 million in financial assistance to MWD's member public agencies for conservation, recycling and groundwater clean-up projects.

In addition, Metropolitan will continue its public outreach efforts to shift the region's water-saving focus from inside to outside the home, where up to 70 percent of water is used, officials said.

The 2005-06 budget anticipates sales of 1.9 million acre-feet of water during the fiscal year, or about 300,000 acre-feet less than 2004-05 because of this year's near-record rainfall in Southern California.

An acre-foot of water is nearly 326,000 gallons, enough to meet the needs of two typical Southland families in and around their homes in a year.

To make up for decreased water sales, Metropolitan plans to use about $135 million from the district's rate stabilization fund to meet expenditures while avoiding additional rate impacts.

The district's operations and maintenance costs will increase to $289.9 million, up $7.4 million or 2.6 percent from the previous fiscal year.

The increase "reflects an enhanced focus on system maintenance to ensure reliability; higher water treatment costs associated with more stringent water quality regulations; and increased labor costs," according to an MWD statement.

MWD is a cooperative of 26 cities and water agencies serving 18 million people in six counties. The district imports water from the Colorado River and Northern California to supplement local supplies.