The Padre Dam Municipal Water District’s Board of Directors unanimously voted to approve a zero percent revenue increase for water and wastewater operations over the next five fiscal years 2023-2027.
In preparation for the next Five Year Strategic Business Plan and Budget, the District hired an independent rate consultant to prepare a comprehensive Cost of Service Study with the guidance that the District wanted to minimize any impact to customers. The results of this study are the basis for the District’s proposal of a zero percent increase to revenues. The next step in the process is a public hearing this July, where the board will formally consider the comprehensive Cost of Service Study and the proposed revenue and rate adjustments.
Padre Dam Assistant General Manager Kyle Swanson said the board set the revenue for the next five-year business plan, providing direction on what it needs to accomplish, develop a budget, and providing no revenue increase for its customers.
“We are looking at keeping the costs of water and sewage service affordable for our customers,” he said. “We are all recognizing the challenges of today with inflation. There will be some minor changes between the tiers, but for our average customers there is no rate increase,” adding that it will go with a rate hearing on July 13.
Board President Bill Pommering said this process began 10 years ago when Padre first adopted going to a five-year plan, something unique to the water industry.
“We went through a lot of heartaches, many problems going back to the Great Recession,” he said. “We had to reduce staff, hold raises and other items within our own household. I think we have proven that we can project very well out in five year increments. The combination of things that we have been able to do, reducing costs, maximizing current staff, and now able to introduce this using some reserves to offset increases that will come to us. We want to make sure that we are doing the best things that we can for our ratepayers.”
Pommering said these are interesting times for water, and that the San Diego County Water Authority has enough water in reserves to take care of its needs in San Diego County for at least a decade if not longer.
“A lot of money was spent over the past 20 to 25 years to ensure that the water supplies could be as secure as possible,” he said. “We are all in a better place in Southern California. Hopefully, people will use water, but use it responsibly.”
Pommering said the county and its customers responded 10 years ago to save water.
“They installed low-flow toilets, low flow aerators, went to drip systems, and did everything they could, with a reduction in the county of 30-35%,” he said. “That was not happening in the rest of the state. So, when the governor comes in and says you must do 15% more, it is difficult to find that 15%. In spite the fact the population has increased in San Diego County, we are using less water per person.”
