June 13, 2023 – Rowland Water District’s (RWD) Board of Directors approved a $27.9 million budget for 2023-2024 that reflects the rising costs of operations, maintenance and capital projects, as well as required financial reserves.
The budget for the fiscal year that begins July 1 includes an estimated 4.5% increase in expenses due to inflation and a rate increase from wholesaler Metropolitan Water District of Southern California that will take effect January 1, 2024.
“Inflation is everywhere, and we are not exempt,” said Myra Malner, RWD’s Director of Finance. “These budget revenues and expenses are based on known costs and reasonable estimates.”
Projected operating expenses for 2023-2024 are $23.3 million, up from $21.8 million this year. The increase reflects the higher costs of imported water, chemicals for treatment and electricity for pumping.
Operating revenues for the coming fiscal year are $30.4 million, an increase from $29.7 million in 2022-2023. The operating budget is funded by sales of potable and recycled water and meter charges on customer bills.
A $4.6 million capital budget for the coming fiscal year will fund projects that ensure reliable delivery of clean, safe water. They include rehabilitation of a District reservoir and pump station, the purchase of emergency generators, and replacement of service lines and valves.
RWD has taken steps to save money, including refunding bonds that reduced interest payments by $3 million. The bond interest savings were used to pay for employee pension liability under CalPERS, which resulted in additional savings of $4 million. Total savings of $7 million helps maintain rates for customers. The District also stands out among public agencies for fully funding its employee pension liability, a rarity.