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Metropolitan Water District chair outlines budget alternatives and warns of Colorado River shortfalls
Summary
Adan Ortega, chair of the Metropolitan Water District board, told the San Fernando City Council the district's proposed biannual budget includes a $950 million CIP scenario and could lead to double‑digit rate increases without grant support; he also warned of severe Colorado River shortages this year and described exchange agreements and long‑term infrastructure risks.
Adan Ortega, who represents San Fernando on the Metropolitan Water District board and said he is "in my second term as chair," presented the district's proposed biennial budget and laid out scenarios that would affect local water rates.
Ortega said the district is proposing a capital improvement program in the range of $800–$950 million tied to investments in system rehabilitation, staffing and resource development. "We provide water to approximately half of California's population," he said, arguing that the system needs steady revenue to withstand drought cycles.
Why it matters: The board's choices now — including how much to shift costs from volumetric water charges to fixed or property‑tax‑derived revenue — will affect water bills for many San Fernando residents if their water provider buys imported water. Ortega described a higher fixed‑revenue mix as a hedge against future sales declines and drought.
Budget scenarios presented included a revised proposed budget (CIP ~$950 million) that staff estimated would produce an overall rate increase near 9.3% in 2027 and 9.2% in 2028 under one property‑tax assumption; alternatives ranged from a more conservative $800 million CIP and a lower annual rate increase (about 4.8%) to proposals that limit major projects unless they receive grant funding.
Ortega noted about $180 million in federal and state funding to support studies and early work on projects such as Pure Water Southern California; with those grants the modeled rate increases were modestly lower in some scenarios.
Risk and context: Ortega warned the council that the Colorado River's hydrology this year was dramatically reduced and that the river may only produce about 2 million acre‑feet, well under historical expectations. He described exchange agreements (moving water across agencies and states in return for investments) and growing infrastructure risk — notably concerns about the California aqueduct's capacity — as drivers that make long‑term planning and higher near‑term investment likelier.
What comes next: Ortega said the district board would meet April 14 to finalize the biannual budget and calendar year rates. He told the council he would return next quarter with updates.
Sources: Presentation by Adan Ortega to the San Fernando City Council (SEG 062–SEG 395).
