Just two months into fiscal year 2014, MWD has already over-collected nearly $24 million from Southern California water ratepayers. At this rate, MWD is on pace to collect over its board-adopted maximum reserve by more than $140 million this year.
During its September 9, 2013 Finance and Insurance Committee meeting, MWD staff reported water sales are about 10 percent higher this year than projected, and $24 million higher than budget.
Over the past two years, MWD over-collected $314 million more in revenues than expenses, which caused its reserves to exceed the board-adopted maximum level by $75 million. In June, business groups, community activists, mayors and several Southern California water agencies tried unsuccessfully to convince MWD to refund the over-collected monies to ratepayers and roll back a planned 5 percent rate increase for 2014 to stop the over-collections.
Instead, MWD’s board voted to increase its spending by $75 million; kept its rate increase at 5 percent for 2014; and refused to refund money to cash-strapped cities and water districts. Further, at the same meeting, the board voted to hold MWD’s property tax rate at the current level, which suspended taxing limitation imposed by its own Act and will result in additional revenue for 2014 of $4.7 million.
MWD’s CFO said staff would give a more detailed financial picture during MWD’s October 7 Finance & Insurance committee meeting.
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