press release

August 23, 2001

WATER BOARD ADOPTS $32.5M BUDGET

The Sweetwater Authority Governing Board yesterday approved a $32.5 million budget for fiscal 2001/2002. The budget includes $24.5 million in operating expenses and $8 million in capital improvements to the water system serving 175,000 residents in portions of Chula Vista, National City and Bonita. Included in the budget were $7.8 million for imported water purchases and $1.95 million to cover power costs. Reserves of $3.3 million were used to reduce rate increases.

Funds of $2.9 million were earmarked for water main replacements. The General Manager reported that the Board had invested an average of $1.3 million annually since 1979 toward the goal of replacing its system of cast iron water mains, some dating back to the 1880’s. He stated the project was 75 percent complete, and would be finished within seven years. “This investment,” he reported, “has dramatically reduced the number of leaks in the past twenty-two years and allows for same-day repairs when a leak does occur.”

The budget includes $695,000 was designated for reservoir and habitat protection at Sweetwater Reservoir, and $325,000 will be used for improvements to the water treatment plants. Funds were also included to conduct water quality studies designed to improve the taste, odor and color of drinking water treated at Sweetwater Authority facilities. he said these funds would further the Board’s goals of assuring diverse, reliable local water supplies and enhanced water quality. The budget also included money to begin recreational fishing at Sweetwater Reservoir in early 2002.

Staff reported that unaccounted-for water, which does not generate revenue because of system flushing, recorded main leaks and other operating functions, was kept to 6.9 percent, compared to a national average of 10 percent, and that discretionary “unallocated” reserves were kept to 1.1 percent of the total budget, or $365,000.

The adopted budget included $2.9 million in increased costs for imported water and power. Those increases were identified as the chief factors that led to the August adoption of a 6.9 percent rate increase, effective September 1.

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