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.