Water Board Adopts $364 Million Budget

As county supervisors cut tens of millions of dollars in
spending, water district officials are spending $50 million more
than last year.
San Jose – As county supervisors cut tens of millions of dollars in spending, water district officials are spending $50 million more than last year.

On Thursday, the governing board of the Santa Clara Valley Water District vote 6-0 to approve a $364 million budget for fiscal year 2007-2008. The increase from this year’s budget of $314 million is made possible, in part, by the district’s ability to raise water rates.

Three weeks ago, that’s just what the district did, eliminating more than $150,000 in discounts for county farmers and tacking on a $25 increase to the yearly water bill for the average five-person family, raising it from $230 to $255.

The district budget, which takes effect July 1, includes $110,000 for a Llagas Creek fire management program, $1.25 million to continue recycled water rebates with the cities of San Jose and Sunnyvale, $50,000 to plan for global climate change, and $305,000 to upgrade the district Web site and perform public outreach.

In the next 12 months the district will collect $135 million in revenue from cities, farmers and private water companies, who often recoup that cost by passing it on to consumers.

Additionally, the district will receive $96 million from issuing bonds for capital programs and $72 million from property taxes, along with income from various smaller sources. 

Thanks to the funding boost, the district is hiring 21 additional employees at a cost of $2.2 million, purchasing computers at a cost of $2.2 million and shopping for new cars and trucks at a cost of $700,000. At the same time, other county agencies are firing employees and scaling back services. Santa Clara County supervisors last month lopped $118 million off a $3.6 billion budget, forcing cuts in mental health programs, drug and alcohol services and other human services.

Critics say the district’s escalating budget reflects needless spending, but district officials say they are simply trying to keep up with soaring costs of maintaining water resources for some 1.7 million residents. 

“We all know they’re jacking the water rates up,” said San Martin resident Bob Cerruti, an avid water district critic. “It’s because they need the money to fuel their bureaucracy.”

That bureaucracy includes more than 830 employees. Officials say that is comparable to other public agencies and that local water rates are similar to those around the state.

Board member Sig Sanchez defended the budget, stating its programs are in line with previous years and its new positions are needed to maintain treatment plants, reservoirs and other core services.

“Our water utilities department is the heart of the district,” Sanchez said, “and we’re falling behind on maintenance.”