press release

Thursday, July 10, 2008
FOR IMMEDIATE RELEASE

Water board adopts $50.1M budget for fiscal year 2008-09
Budget includes proposed 9.4 percent rate increase for January 1, 2009

Chula Vista, CA - The Sweetwater Authority board of directors adopted a $50.1 million budget for fiscal year 2008-09 at a special board meeting held June 13. The budget includes $33.5 million in operating expenses, $11.9 million for capital improvements, and $4.7 million in debt service. The budget also includes a proposed water rate increase of 9.4 percent,
proposed to take effect January 1, 2009. The rate increase is subject to a public hearing that is scheduled later this year.

Facing local and state drought conditions, restrictions on water transfers from the Delta and higher costs for imported water, General Manager Mark Rogers said, “Sweetwater Authority’s prudent approach to a balanced budget will fund our operations, capital investments and debt obligations. This will ensure continued safe and reliable water service to our customers in Chula Vista, National City and Bonita.”

The adopted budget reflects an 18 percent increase to purchase untreated imported water, rising energy costs, and declines in revenue based on usage and new construction fees. To contain rate impacts, $3.4 million in reserves will be transferred to revenues.

Major capital projects for the new fiscal year include upgrades to the Robert A. Perdue Water Treatment Plant, older main replacements, and improvements to the Richard A. Reynolds Groundwater Desalination Facility. Other projects include air and water quality monitoring at Sweetwater Reservoir, supervisory control and data acquisition (SCADA) upgrades, and valve replacements.

Several important grants were obtained to fund studies for an Otay River Desalination Facility and for the San Diego Formation Aquifer by the U.S.G.S.

Sweetwater Authority provides public water service to 184,900 residents of Chula Vista, National City and Bonita.

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Contact: Sue King, 619-409-6721