Revenue must go up to buy imported water to replace this year’s smaller pumping allocation, because less rainfall is projected, and because the capital budget is much larger. The average billing rate will increase because each Tier is reduced from 8,000 to 7,000 gallons per share per month. All changes took effect December 1, 2024.
Projected Sales Volume and Costs Up
The budget assumes rainfall will be average at 11.71 inches in the fiscal year beginning December 1, 2024 and sales of 715 acre-feet (versus 600 AF last year) after adjustment for the fact that about 5 percent of customers’ homes burned in the Mountain Fire. That will require acquisition of 753 AF, including non-revenue water of 5 percent. Crestview plans to pump its entire groundwater allocation of 686.46 AF (down 4.7 percent from last year) and buy 66.1 AF from Calleguas. In a high-rain year of 17.13 inches, there would be estimated sales of 645 AF, and Crestview would pump all but 7.6 AF of its allocation. In a dry year, 7 inches of rain, Crestview would buy an estimated 166 AF from Calleguas. Calleguas water costs $2,129 per AF, which is 4.7 times the variable cost of pumping groundwater.
Capital Budget More than 2x Larger
The capital expense budget is $600,000 versus $265,557 last year (none of which was spent). Projects on which this budget might be spent include:
- $100,000 for computer, SCADA, and security upgrades.
- $10,000 for a new Chlorine tank and liner at Well 6
- $115,000 estimated [annual] debt service for a seven-year period at current interest rates for 2 auxiliary power generators for a well and booster station 2 at an estimated total cost of $550,000.
- $75,000 for capital improvements to the central office location such as driveway asphalt repair, repair exterior of office building, and gate replacement
- $300,000 for Well 7 project and public private partnership resilience projects with Calleguas MWD.
No further details about these projects were provided to the Board or to Crestview Watch. However, it was clear from the Board discussion on November 26 that none of these items has yet been fully defined and costed out and that putting them in the budget does not avoid the requirement of Board approval for each project.
Adjusted Rate Schedule
Following past practice of having the entire groundwater pumping allocation fit within Tier 1 of the rate structure, all Tiers will be reduced from 8,000 gallons per month per share to 7,000 gallons, but the billing rate per acre-foot within each Tier is unchanged. This has the effect of increasing average revenue per acre-foot from $1,940 to $2,509 because customers get into higher Tiers sooner.
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