West Basin approves FY27 budget and 3% water rate hike following prior rejection

West Basin approves FY27 budget and 3% water rate hike following prior rejectionThe California district adopted its $70.3 million operating and $20.6 million capital budget at a special meeting, implementing a 3% increase to the Reliability Service Charge to counter inflationary pressures and new capacity charges.

The Board approved a 3% increase to the Reliability Service Charge, raising it from $321 to $331 per acre-foot.

The FY 2026-27 budget includes $70.3 million in operating appropriations and $20.6 million for the Capital Improvement Program.

The approved rates resolution introduces three new fixed treatment capacity charges passed through from the Metropolitan Water District.

The approvals come after a motion to adopt the budget and rates failed at a May 27 special board meeting.

The West Basin Municipal Water District Board of Directors formally adopted its Fiscal Year 2026-27 Annual Operating and Capital Improvement Program Budget on June 4, alongside a resolution setting water rates and charges for the upcoming year. The approval follows a brief delay after a motion to pass the staff recommendation failed at a special board meeting on May 27. During the June 4 meeting, the budget and rate resolution passed with yes votes from President Don Deer, Director Tommy Faavae, and Director Scott Houston. Director Gloria Gray recused herself from the item out of an abundance of caution, and Director Desi Alvarez was absent. The adopted FY 2026-27 budget features $70.3 million in operating appropriations and a $20.6 million Capital Improvement Program (CIP) budget. To support these expenditures, maintain infrastructure reliability, and address rising imported water costs, the Board approved a 3% increase to the District's Reliability Service Charge (RSC), which will rise from $321 to $331 per acre-foot. Chief Financial Officer Wendy O'Kelley noted that the newly adopted rate resolution also incorporates pass-through charges from the Metropolitan Water District of Southern California (MWD). MWD introduced three new treatment capacity charges for the upcoming year, reallocating 30% of its volumetric treatment charge into a fixed revenue stream. These include a treatment peaking capacity charge of $33,700 per cubic foot per second, a treatment used standby capacity charge of $15 per acre-foot, and a remaining standby capacity charge of $72 per acre-foot. Recycled water irrigation rates for the inside service area will be held at $2,027 per acre-foot, while outside service area rates are set at $2,127 per acre-foot.