Santa Fe Springs budget workshop flags water fund shortfall, $27.6 million in remaining CIP work

At a council budget workshop, Director of Finance Julio Morales told the Santa Fe Springs City Council that special-revenue transfers and one-time carryovers are covering an operating shortfall but the city’s water utility is running a structural deficit driven by rising imported-water costs and contaminated local wells.

Morales said special funds will transfer roughly $2.3 million back to the general fund to cover part of an earlier $1.5 million operating gap. He also told council members that the city shows about $9 million in restricted fund balances and roughly $12.7 million in capital projects currently planned.

"Half of our budget is the cost of imported water," Morales said. He said most of the city’s imported supply comes from the Metropolitan Water District, at roughly $1,300 per acre-foot, and that some local wells are offline because of contamination. "We have wells — four wells — that are all out of commission. They're all contaminated," he said, adding that remediation estimates run "anywhere from $3 to $5 million per well times four." Morales warned the council that Metropolitan Water…