California Water News Daily Your Source For Water News in California
Earlier this week the San Bernardino Valley Municipal Water District (SBVMWD) Board of Directors voted to lower its property tax rate. After 20 years of rates at $0.1425 per $100 of assessed property value or higher, the Board is lowering its tax rate to $0.1300 per $100.
As a State Water Contractor, SBVMWD is required to set a property tax rate each fiscal year for the debt service fund on its State Water Contract.
According to the District, diligent planning efforts for its long-term water supply, consistent building of financial reserves to fund upcoming projects, and favorable investments over the past several years, has put SBVMWD in a position to meet all its new infrastructure commitments and maintain a healthy emergency reserve fund for the foreseeable future.
“I’m pleased we’re in a position to make this change while not compromising our financial security for new water projects,” commented Valley District Board President Paul Kielhold. “When the voters of the San Bernardino Valley committed to being a State Water Contractor in 1960, it was a long-term commitment for the benefit of the region. As a State Water Contractor, we have an obligation to ensure we are investing wisely, planning and building projects, and ensuring the people of this valley have the water they need to thrive.”
Through continued conservative spending, the District is projected to increase its reserves for Project-Specific Rate Stabilization. Those reserves are used to cash finance, as much as possible, the District’s obligations for two significant projects – Delta Conveyance and Sites Reservoir – thus mitigating any possible tax rate adjustments in the future and providing huge savings to ratepayers on long-term interest costs.
