We asked the City how the city allocates the costs of operations with the SDWD. We also requested a copy of the cost allocation policy between the SDWD and the City.

RESPONSE: see attached file

The attached file does not appear to be a policy.

We also asked how much of the budget is subject to cost allocation. We also request documentation on the total cost/amount subject to the allocation rules in the most recent fiscal year.

RESPONSE: see attached file

Same file as above.

Under the proposed rate structure the SDWD will add money into the rate stabilization fund.

From the SDWD staff report: Operating Reserve Rate stabilization reserves are used to help offset unexpected or unforeseen costs for purchased water or system repair True to its purpose the District has used this reserve to absorb some of the unexpected cost increases due to drought conditions The reserve will be below target for the next few years but will be built up over time and at target again by FY14 The Rate Stabilization Reserve is shown the figure.

UT Council to consider pay increase.
The council also will consider giving Cotton an 11 percent raise, which would bring his compensation, including wages and deferred compensation, to $242,640. His last raise was in May 2007.

UPDATE: The council postponed the vote for two weeks.

From the SacBee Saturday, February 13, 2010
Sacramento city officials acknowledged Tuesday they misused utilities funds to pay for general government expenses.

... The 1996 voter-approved initiative bars local governments from using ratepayer funds such as water and sewer to cover general government expenses...

Marty Hanneman, the city's utilities director, addressed the City Council on Tuesday night, outlining a number of steps the city has taken to address Proposition 218 violations and proposing additional measures. He said there had been memos indicating possible problems.

...

Councilwoman Lauren Hammond said she was upset the violations could have caused utility rates to go up for residents because the money for utilities was being diverted elsewhere. She said her own bills went from less than $79 in 2003 to more than $106 in late 2009.

"I have no confidence in your cost allocations. It's not personal. I just don't believe you," she told the utilities director. "Obviously the city of Sacramento has never complied with Proposition 218 … Something is seriously wrong here and we have not fixed it and management has not fixed it."

...

City officials say they still don't know how much the violations cost ratepayers. The grand jury cited a 2008 consultant's report that found violations had cost the utilities funds more than $21 million since 1996.

...

As a result, it's not uncommon for localities to stretch the limits of the law. "The issue goes way beyond the city of Sacramento," he said.

Friends,

I am writing to urge you to protest the planned water rate increase for San Dieguito Water District (SDWD). You can do that by filling out the attached protest form and mailing it to the Encinitas Taxpayers Association so that it gets there by February 24.

The problem with the rate increase, as I see it, is twofold. First, the City is shifting some of its expenses to the SDWD, which results in higher rates. Second, the SDWD gives developers, businesses and the City a discount on rates. This results in higher rates to homeowners.

To prove my point, compare the proposed SDWD rates with the rates charged by the Olivenhain Municipal Water District's (OMWD). (The proposed SDWD and existing OMWD rates are in the attachments.) The SDWD serves Western Encinitas. The OMWD serves Eastern Encinitas. [OMWD uses more imported water and should be more expensive.] But, the proposed SDWD rate for homeowners is more than 50% higher than the OMWD rate. The differential is even greater in a drought, like the one we are in now.

Read more »

This was posted to the ETA blog. We've been able to confirm with SDWD staff that this is a draft of an essay submitted several years ago to the SDWD/City of Encinitas as part of a scholarship contest. It discusses reasons for wanting the SDWD to be independent from the City. The City/SDWD did not select this as the winning essay.

Today in California there are approximately 3,400 special districts. Each has a separate identity for their own specific interest. Each special district provides a variety of services from water distribution to fire protection. A board of directors governs each district. A special district can be defined as, “any agency of the state for the local performance of governmental or proprietary functions within limited boundaries.”

I believe the biggest benefit of special districts are the ability to serve specific needs of a community that might not be the needs of an adjacent community or a special district can fulfill the needs of several communities which might form to become one special district. The case in point is the San Dieguito Water District, which serves potable and recycled water to approximately 37,000 residents in Encinitas, Leucadia, and Cardiff by the Sea. These are three very different communities with the same need for a safe, reliable water supply for domestic, agriculture and industrial purposes.

Read more »