Conservation at a Cost: Local Agencies Decrease Water Usage—and Face a Decline in Revenue as a ResultWritten by Kevin Fitzgerald
On July 30, the State Water Resources Control Board issued a press release highlighting the quick success of statewide water-conservation efforts.
“With record-breaking heat throughout much of the state in June, Californians continued to conserve water, reducing water use by 27.3 percent and exceeding Governor Edmund G. Brown Jr.’s 25 percent mandate in the first month that the new emergency conservation regulation was in effect,” the release said.
However, most of the Coachella Valley’s water agencies didn’t conserve as much water as the state wanted.
Among Coachella Valley’s five water districts, the Mission Springs Water District had the least success in June, reporting only a 10 percent decline in usage—missing its 28 percent target by 18.4 percent. The Coachella Valley Water District (CVWD) reported a 21 percent decrease in usage—but missed the state’s huge, harsh 36 percent target reduction by 15 percent.
A bit more conservation success was realized by the Indio Water Authority; the agency reported a 26 percent usage decline, but that still fell 5.6 percent short of the targeted 32 percent. The Coachella Water Authority reported a 20 percent decline, 4 percent below the 24 percent target.
By far, the best local June conservation results came from the Desert Water Agency, which exceeded its 36 percent target with a 40 percent decline in usage.
Representatives of the agencies put a positive spin on the numbers.
“We were pretty satisfied with our June number of 21 percent,” said Heather Engel, the Coachella Valley Water District’s director of communications and conservation, “although the state water board criticized us because it was 15 percent away from our goal number of 36 percent. We got some feedback from the state that we might have to do something differently, but we felt that 21 percent was pretty impressive for summer in the Coachella Valley.”
Even more impressive are the CVWD’s July numbers: The district saw a 41 percent decrease, when compared to the same month two years ago. However, the Desert Water Authority’s reduction fell from 40 percent in June to 30 percent in July.
As of our press deadline, July reports were unavailable for the Indio Water Authority, the Coachella Water Authority and the Mission Springs Water District.
Katie Ruark, the DWA public information officer, said her agency wasn’t sure why the 40 percent reduction in June slipped to 30 percent in July.
“We haven’t been able to determine any factual evidence to demonstrate what made the difference between the conservation results in June and July of this year, since it’s only been two days since we reported that information,” she explained. “But we will continue to implement our restrictions and conservation programs to keep the momentum going.”
Ruark did offer some preliminary theories on the difference between the two months: “July was a hotter month in terms of temperatures than June, so that could have been a factor in increased use. Also, it occurs to me that we should look at an increase in tourism rates throughout July, because that could impact the level of usage as well.”
Over at the CVWD, the marked improvement in conservation results obviously pleased Engel. She credited the agency’s public outreach, education programs and rebate programs. “We’ve had this jump in July, and I think that can primarily be attributed to not only the ongoing efforts just mentioned, but that’s when the drought penalties went into effect. That was an additional financial incentive for people to cut back their water use.”
However, the water agencies now find themselves in a curious quandary: As their conservation successes increase, they’re bringing in less money. Does this forebode a rate increase for water customers?
“In July alone, our regular billed water consumption revenue was down by more than $2 million, but we received $1.9 million in new penalty revenue,” CVWD’s Engel said. “We’re hoping to use some of that (penalty) money to further fund our conservation programs, like the turf-buyback program, but I’m not sure if that’s the way it will work, honestly, because our overall revenue is down due to the conservation of water. That penalty funding may be needed to recoup some of that lost revenue.”
Ruark said the Palm Springs-area Desert Water Agency readied itself for the loss in income.
“The DWA, in the preparation of the 2015-2016 fiscal year budget … did prepare for a revenue hit that we knew would result from decreased water use,” she said. “We compensated for that by projecting a $10 million hit, and we deferred capital-improvement projects, and we’ll be taking some money out of our operating reserves to fill that gap. In 2016, we were already scheduled to be doing a rate study, so we’ll be taking a really hard look at both our costs and our rates to determine if our customer rates do need to be adjusted.”
At the east end of the valley, the CVWD’s Engel described the challenge this way. “We do have reserve funds that are specifically designated for use as a rate-stabilization resource. So, when and if we do have a large drop in revenue, we can rely on those funds to be a short term solution. As a result, we are not seriously concerned about the near future.”
There will be no relief forthcoming from the State Water Resources Control Board, which declined to accept appeals and population-data submissions by the DWA and CVWD, which felt the absence of seasonal residents in population statistics skewed the agencies’ per-capita water usage—and resulted in the harsh decrease mandates from the state.
“We did submit our data to them in a memo with backup documentation of our methods,” Ruark said. “They would not accept our conclusions because they felt that we should only include seasonal residents in our winter months’ usage calculations. We explained that those homes are still using water even when the residents themselves are absent, because most of the water usage is on landscaping needs outdoors, and continue regardless. But they declined to accept that premise.”
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