CVWD is facing two major financial challenges right now. First, short-term mandatory conservation is resulting in reduced revenue and the long-term effect of the drought is likely to result in permanent conservation. This is great news from a water management perspective, but CVWD needs to find ways to meet the same level of service in providing high quality water with less revenue.
In addition, CVWD is facing an estimated $250 million in capital costs associated with the state’s new chromium-6 drinking water standard. CVWD is pursuing low-interest financing (State’s Drinking Water State Revolving Fund) to help keep costs and rates as low as possible. Successfully obtaining this type of financing requires a long-term revenue plan. Although the long-term plan outlines five years of increases, those proposed rates will need to be re-evaluated and approved each year by the Board of Directors following additional public input.