Water District Adopts 2013-14 Budget

The following is a press release from the Las Virgenes Municipal Water District

The Las Virgenes Municipal Water District (LVMWD) Board of Directors at their June 11 meeting unanimously approved a $72 million budget for fiscal year (FY) 2013-14 that becomes effective July 1. The budget includes funding for LVMWD’s three core services, potable water, waste water treatment and recycled water distribution. 

The adopted budget includes operating expenses of $46.8 million, non-operating expenses of $0.1 million, debt service payments of $2.7 million and capital project expenses of $22.4 million. Water from the Metropolitan Water District of Southern California is LVMWD’s largest single expense; $19.5 million is budgeted for that item. 

Capital improvement projects are a significant component of the FY 2013-14 budget, as the District commences three major projects. The potable water “Backbone Improvement Program” will increase system reliability and storage with a new pipeline being constructed in Calabasas and a five million gallon tank at Las Virgenes Reservoir in Westlake Village. 

In the wastewater treatment enterprise, construction is slated to begin on a third biosolids digester at the Rancho Las Virgenes Composting Facility. 

LVMWD General Manager David W. Pedersen characterized the budget as prudent and responsive to customers’ needs. 

“While significant, our capital projects will not require borrowing; they will be funded by reserves already set aside for those purposes on a pay-as-you-go basis," he said. "Our actual operating expenses have remained stable and we remain committed to providing our customers with excellent service at the level they expect.” 

In 2012, LVMWD adopted a three-year rate schedule with increases in water costs adopted rate schedules, however, the Board will review each scheduled action prior to the new rates becoming effective. The adopted water rate changes reflect already-announced increases from the Metropolitan Water District of Southern California through 2014. 

In the past, the Board has chosen to forego or reduce scheduled increases in sanitation rates when operating revenues have been adequate. 

“Future wastewater costs will need to be reviewed if and when new water quality standards for Malibu Creek are implemented by the U.S. Environmental Protection Agency and the Los Angeles Regional Water Quality Control Board,” Pedersen said.