The Metropolitan Water District of Southern California on April 8 raised rates unnecessarily for 2015 and 2016 despite having projected cash reserves of $840 million - an amount that is $352 million above its board-adopted maximum reserve limit. MWD's board also voted to spend the over-collected revenue on unbudgeted expenses. A decision to raise property taxes was postponed until August.

Officials from the Water Authority and several of its 24 member agencies attended the hearing as well as two prior hearings in Los Angeles to urge a no vote. Several Water Authority member agencies and organizations, including the San Diego Regional Chamber of Commerce, the San Diego Regional Economic Development Corporation, and the San Diego County Taxpayers Association, also sent letters protesting the over-collection and increases. 

In February, mayors of 14 cities in San Diego County called on their colleagues across Southern California to protest the over-collection and the planned rate increases by MWD. In March, the Water Authority used MWD's own financial documents to develop estimates for how much money MWD is over-collecting from each water agency that buys water from MWD. The analysis is at www.mwdfacts.com.

In addition to opposing MWD's rate proposal for 2015 and 2016, the Water Authority has sued MWD for setting rates that illegally overcharge San Diego County ratepayers in 2011, 2012, 2013, and 2014. San Francisco Superior Court Judge Curtis E. Karnow tentatively ruled on Feb. 25 that MWD's rates violate Proposition 26, a measure passed by voters in November 2010 to stop the very kind of taxes MWD is imposing on ratepayers, which exceed the true costs of providing service.   Numerous California statutes, the California Constitution and common law all require that public agencies such as MWD base their rates on the actual costs of the services provided. To read more about the litigation, go to http://www.sdcwa.org/mwdrate-challenge.

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