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Sweetwater Authority previews FY25–26 financial assumptions; board requests more detail at next meetings
Summary
Finance staff presented high-level assumptions for the FY25–26 five-year financial plan, highlighting an expected San Diego County Water Authority (CWA) rate proposal and the need to consider major capital projects outside current rate capacity.
At its April 9 meeting the Sweetwater Authority governing board reviewed the draft assumptions that will shape the authority’s FY25–26 five-year financial plan. Director of Finance Rich Evensen said the presentation was an initial step in an iterative process that will return to the board with more detailed numbers in April and at a May workshop.
Evensen told directors the largest near-term change is a draft San Diego County Water Authority budget that includes a 21.6% increase in wholesale water rates. “That’s about a $400,000 increase…based on purchasing 1,300 acre-feet,” Evensen said, adding that the immediate fiscal impact is manageable for the authority’s roughly $50 million budget but could be severe in prolonged drought scenarios or if larger purchases are required.
The presentation summarized other recurring cost drivers: CalPERS unfunded liability payments, two memoranda of understanding that set next fiscal year salary increases, CWA fixed charges that are partially reducing due to a rolling-average demand decline, and a pre-approved water rate change scheduled for Jan. 1, 2026. Evensen said staff will return with proposed financial-plan numbers at the April 23 board meeting and a budget workshop May 20.
Board members asked for clarifications on supply and production terminology, and sought earlier public posting of the May workshop materials so the public can digest technical figures in advance. “We could definitely take that into consideration,” Evensen said in reply to a suggestion to post materials 72 hours before the workshop.
Directors also requested staff include discussions of several large projects in the financial-plan narrative, noting staff had described those projects as likely requiring financing because their costs exceed current rate capacity. No formal budget decisions were made at the April 9 meeting; the board provided input and directed staff to bring the draft financial plan and additional detail to upcoming meetings.
