Contact: Marty Grimes
Office: (408) 265-2607, ext. 2881
Mobile: (408) 202-4398
Date: May 16, 2012
SAN JOSE – On Tuesday, May 15, the Santa Clara Valley Water District Board of Directors adopted a $285.2 million operating and capital budget for the next fiscal year, continuing a budget cutting trend that began in 2008. The new budget is 30 percent less than the Fiscal Year 2009 budget of $409.6 million and almost 9 percent less than the FY 2012 budget of $312.6 million.
The adopted budget focuses on delivering critical services to Santa Clara County communities and funds projects to deliver clean, reliable water; maintain flood protection channels; provide stream stewardship; and maintain aging infrastructure.
“Over the past few years we have carried out a number of efforts to streamline and consolidate operations in order to focus on our core business and achieve efficiencies,” said Chief Executive Officer Beau Goldie. “All of these efforts have made the district a leaner operation and we are now better positioned to address the major challenges and needs ahead.”
The budget includes funding to complete master plans that will dictate future infrastructure improvements to maintain these critical services, support the projected population growth and the Silicon Valley economy, and ensure that public monies are invested wisely.
The budget includes capital outlays of nearly $64.9 million, 23 percent of the total budget, for FY13. The budget includes capital reimbursements revenue estimated at $38.9 million, which includes state subvention funds, grants from the state Department of Water Resources and the federal American Recovery and Reinvestment Act. The adopted budget provides for construction of twelve capital projects in FY 2013, which are expected to generate an estimated 800 to 1,600 local jobs.
Also, yesterday, the board approved the district’s five-year Capital Improvement Program for fiscal years 2013 through 2017. The plan includes 72 projects totaling $2.3 billion. Approximately 30 percent of this amount, $708 million, is anticipated to be funded by outside sources through reimbursements and cost-sharing partnerships. The program includes water supply, flood protection, water resources stewardship, buildings and grounds and information technology projects.
Over the next five years, the total estimated award of construction contracts is $540 million, which will generate or sustain between 5,300 and 10,600 jobs in the private sector. In addition, an estimated $45 million to $55 million will be expended on consultant contracts, generating or sustaining between 200 and 400 jobs in the private sector. The plan includes 16 projects to increase flood protection ($715 million), and 11 environmental restoration, enhancement and mitigation projects ($60 million).
Major water supply projects include three new projects: seismic retrofits at Calero and Guadalupe dams for $120 million, a pipeline rehabilitation project for $23 million and seismic retrofits at critical juncture of the treated water delivery system near Penitencia Water Treatment Plant for $6.7 million. The CIP increases funding for the Anderson Dam Seismic Retrofit Project to $185 million and major reliability improvements at Rinconada Water Treatment Plant, increased to $292 million.
To achieve these water supply objectives, the board of directors adopted water charges for the coming fiscal year. Groundwater production charges will increase by 9.3 percent, which represents an increase of $1.83 per month to the average household. The rate, $622 an acre-foot, is what well users pay to extract groundwater in the northern half of Santa Clara County. This zone comprises San Jose and all communities north of Metcalf Road.
Groundwater charges are lower in the southern half of the county, primarily due to infrastructure differences. The north county water system includes three water treatment plants and a vast water distribution system, while the south county relies on groundwater. The adopted groundwater charge in the south county zone is $295 per acre-foot, an increase of 3.5 percent, or 34 cents per month for the average household.
Since 2008, the district has reduced staffing by 107 positions, or 12.6 percent. In late 2011, the district signed new contracts with three bargaining units which will save more than $7.7 million over the three year agreement period. In addition, a five-year audit plan will examine all key areas of the organization. Several areas, including capital services and procurement have been recently audited resulting in streamlined procedures and organizational changes.
A summary of the adopted budget is available at www.valleywater.org/About/Finance.aspx and the Fiscal Year 2013-17 Capital Improvement Program is available at http://www.valleywater.org/Programs/CapitalImprovementProgram.aspx.
The Santa Clara Valley Water District manages an integrated water resources system that includes the supply of clean, safe water, flood protection and stewardship of streams on behalf of Santa Clara County's 1.8 million residents. The district effectively manages 10 dams and surface water reservoirs, three water treatment plants, a state-of-the-art water quality laboratory, nearly 400 acres of groundwater recharge ponds and more than 275 miles of streams. We provide wholesale water and groundwater management services to local municipalities and private water retailers who deliver drinking water directly to homes and businesses throughout Santa Clara County.