In a letter sent to MWD, the Olivenhain Municipal Water District Manager expressed opposition to pension increases that would add another $70 million in liabilities to the MWD. These costs are ultimately absorbed by water ratepayers.

The letter also notes a 1000% monthly increase in shut off notices, due to lack of payments by OMWD customers.

See Also: Jim Bond and MWD Pension Benefits

The OC Register recently ran an editorial on a move to approve retroactive pension increases for the MWD staff. Encinitas buys MWD water and Councilman Jim Bond has been involved in water issues over the years.

September 8, 2009

Hon. Jim Bond
Councilman, City of Encinitas
Board Member, San Dieguito Water District
Board Member, San Diego County Water Authority

Dear Councilman Bond:

As a recognized regional leader on water and fiscal issues, I am sure you are aware of the recent controversy over the Metropolitan Water District of Southern California's plan to increase the pension for its employees by an impressive 25 percent. The MWD board will be meeting on September 15 to decide this matter. On behalf of the members of the Encinitas Taxpayers Association, I strongly urge you to ask your colleagues on the San Diego County Water Authority who sit on the WMD board -- James M. Barrett, Keith Lewinger, W.D. "Bud" Pocklington, and Fern Steiner -- to oppose this pension hike.

It seems hardly necessary to explain why the pension contract in question should be rejected. Every week brings ever more alarming news of not only the increasing costs of public pensions to cities and other municipalities but the inability of the California Public Employees’ Retirement System (CalPERS) to fund those pensions, given its historic loses during the recent economic downturn.

Unconscionably, this pension hike -- which would cost some $70 million and coincides with loses of at least $400 million in WMD's CalPERS investments -- comes as WMD is simultaneously increasing water rates.

At a time when the public employee pension system has clearly become unsustainable and water costs are going up, tax and rate payers in Encinitas and elsewhere are counting on you to take a strong public stand against the Metropolitan Water District's proposed pension increase.

Respectfully,

Joe Sheffo
President
Encinitas Taxpayers Association

Bond responded that he was against the increase. He is no longer a voting member on the MWD and there is no indication that he plans on taking action to motivate the voting members to watch out for the ratepayers.