Finance
ANNUAL WATER SUPPLY CHARGE
The Water Supply Charge (WSC) was imposed in 2012 to fund the District’s water supply related activities. This charge was collected on property tax bills for properties that were within the District boundaries served by the California American main system.
The WSC has been discontinued for Fiscal Year 2024-25 following a court ruling in September 2024 requiring the charge be sunset or suspended. The District is undergoing discussions with the Plaintiff to address any potential refunds since the filing of their case in 2021-22. The median value of the WSC collected through the annual property tax bills has been around $55 per parcel owner.
During the past few years, the Plaintiff brought a series of six separate cases, collectively challenging various aspects of the District’s collection of the Water Supply Charge. Information regarding these cases are available in the monthly report provided by the District Counsel at the District Board meetings. The link to the Public Report from District Counsel is available here. The California Sixth District Court of Appeals sided with the Plaintiff to sunset the collection of the Water Supply Charge. More information will be provided as it becomes available.
History of the Water Supply Charge
In February of 2012, the District’s Board directed its staff to develop a charge to fund its water supply activities. After considering a rate study prepared by Bartle Wells Associates, the Board introduced Ordinance No. 152 to impose the recommended WSC in April 2012. The WSC was not be levied on properties not connected to Cal-Am’s water system that delivers District-supplied water and that receive District-provided services, though those properties would become subject to the charge if connected to Cal-Am’s system. The District mailed notice to every affected property owner explaining how to protest the charge, as Proposition 218 required. It conducted multiple hearings, although Proposition 218 requires only one.
Upon adoption of the WSC, the District embarked on capital projects to address the water supply crisis. The Aquifer Storage and Recovery Project (ASR) uses the District’s rights to divert Carmel River water during wet periods for storage in the Seaside Basin. Between 1998 and 2024, this program has stored 14,125 acre feet of Carmel River water.
The District also provided the majority of preconstruction funding for the Pure Water Monterey Groundwater Replenishment Project, by which the District buys purified wastewater for injection into the Seaside Basin. The project began deliveries in 2020, and at 3,500 acre-feet per year, is the largest new supply to date and has allowed compliance with the State Water Resource Control Board’s orders.
Since adopting the WSC, the District committed its proceeds, in duly noticed and public meetings, to services and facilities necessary to create reliable supplies. As required by law, the District continued to annually review the WSC along with its budget to determine if it is still needed.
Each year since the WSC’s adoption, the District has drawn on other sources of revenue and reserves so it can maintain its service levels and sustain its ability to achieve the objectives in the District’s Strategic Plan.