In response to receiving the Golden Fleece Award from the San Diego County Taxpayers Association (SDCTA), Sweetwater Authority (Authority) is providing clarity and addressing concerns raised by the SDCTA award nomination regarding its financial planning and water rates.
Because the Authority serves a population largely compromised of disadvantaged communities, careful financial planning is required to maintain water services without overburdening customers. The budget surpluses from fiscal year 2021-22 through 2023-24, cited in the award nomination, are necessary reserves allocated for critical infrastructure projects, many of which cannot be funded in a single budget cycle or by several years of surpluses. These surpluses are not immediate opportunities to reduce rates, but rather vital for upgrading aging infrastructure over time to lessen rate impacts on customers while maintaining reliable water service.
“Despite what the nomination and taxpayers association may purport, maintaining these reserve balances is actually a demonstration of the Board’s financial stewardship,” said General Manager Carlos Quintero. “These reserves are intended to address unpredictable costs, and allow the Authority to minimize impacts of those costs on ratepayers wherever possible.”
Through prudent financial planning, the Authority has been able to limit rate increases to 3.4 percent during a time when the average inflation rate is 4.5 percent. Furthermore, the Proposition 218 process ensures transparency and an opportunity for community involvement during the rate setting process, and mandates that any rate changes are transparent and legally structured.
The Authority remains committed to transparency in its financial planning and budget process. For additional information on the Authority’s most recent rate study, budget, and ongoing capital projects, visit www.sweetwater.org.