CWA approves 2007-09 budget, capital improvement program

The San Diego County Water Authority board approved a two-year budget June 28, and the adoption of the $1.47 billion 2007-09 budget also approves revisions in the CWA’s capital improvement program.

The $3.59 billion capital improvement program includes a capital budget of $618.9 million within the 2007-09 overall budget. The CWA’s 2007-09 budget also includes $530.1 million for water purchases, $200.8 million for debt service, $94.6 million for operating costs, $14.9 million for environmental expenses, $10.0 million as a prepayment to the Imperial Irrigation District as part of the Quantification Settlement Agreement which transfers water from Imperial County to the CWA, $3.6 million for equipment replacement, and $2.3 million for other expenses.

“The budget represents the board’s priorities, and it represents a huge investment, continuing investment, in water reliability for our region,” said CWA general manager Maureen Stapleton. “We devote a lot of time and attention to developing, discussing, and ultimately approving that budget.”

The capital improvement appropriation is the largest in the history of the County Water Authority. “It also represents significant progress on enhancing and expanding our storage and transportation system for water throughout the region,” Stapleton said.

The $3.59 billion capital improvement plan is an increase from the $2.15 billion plan of the 2005-07 budget. During the budget development process CWA staff adjusted the costs of the projects in the capital improvement program to reflect larger than expected increases in construction costs, most notably the increased costs of materials.

The estimated total cost for Pipeline 6 between the CWA delivery point and the CWA’s Twin Oaks Valley treatment plant rose from $258,055,000 in the 2005-07 budget to $445,365,000 in the 2007-09 revision. That includes nearly $4 million already spent, $1,484,000 for Fiscal Year 2007-08, and $745,000 during Fiscal Year 2008-09.

Funding for the Fallbrook 3/Rainbow 1 flow control facility upgrade was increased by $556,000, from $1,359,000 to $1,915,000. The project is expected to be completed by Fiscal Year 2010, and $481,865 was spent on the project through the end of Fiscal Year 2005-06 with another $239,000 budgeted for Fiscal Year 2006-07. The Fiscal Year 2007-08 expenditures are estimated at $823,000 while Fiscal Year 2008-09 planned expenses total $342,000 with the remaining $29,000 slated for Fiscal Year 2009-10.

The Fallbrook 6/De Luz 1 flow control facility throttling valve structure saw an increase of $1,404,000, changing the 2005-07 budgeted amount of $1,045,000 to a 2007-09 figure of $2,449,000. Through the end of Fiscal Year 2006 $693,720 had been spent on the project with another $103,000 budgeted for Fiscal Year 2006-07. An additional $303,000 is planned for Fiscal Year 2007-08 while $1,338,000 is anticipated for Fiscal Year 2008-09. The project has an estimated Fiscal Year 2010 completion, with $11,000 budgeted for Fiscal Year 2009-10.

The $5,160,000 for additional aqueduct right of way width and the $5,955,000 for the groundwater storage and recovery project were not changed from the Fiscal Year 2005-07 budgets. The aqueduct right of way acquisition has planned 2007-08 expenditures of $805,000 and a 2008-09 budget of $873,000. The groundwater storage and recovery project anticipates $551,000 of Fiscal Year 2007-08 expenses and $1,000 of costs during its completion fiscal year of 2008-09.

“Happy we got it approved. It’s truly a significant budget,” said CWA board president Fern Steiner. “We’re intending to do a lot of good work here.”