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Budget & Finance
Metropolitan maintains an annual operating budget of nearly $2 billion, ensuring that our vast water system runs smoothly and that we will meet Southern California’s water demands for generations to come.
We make forward-thinking investments in supplies, storage, conservation, and treatment, and we responsibly maintain our existing infrastructure. Together, these strategically important programs provide Metropolitan with the operational flexibility to store water when it is available and deliver it to our communities in dry years. Our water rates, which recover the cost of providing reliable water service to our member agencies, are established in an open and transparent public process as part of the biennial budget.
Our Adopted Biennial Budget
At its April 9 monthly meeting, our board approved the proposed biennial budget for 2024/25, which strategically balances necessary rate increases with cost containment measures, including reducing departmental expenditures.
The budget and rates approved evolved through months of transparent deliberations, including input from member agencies, interested parties and the public. Metropolitan’s board began discussing the budget in February and has held four public workshops to consider Metropolitan’s expenditures and revenues.
Read our press release, April 9, 2024.
View the board letter and other supporting documents for the adopted FYs 2024/25 - 2025/26 budget and CYs 2025 and 2026 rates and charges here.
Our adopted biennial budget for fiscal years 2022/23 and 2023/24 as well as the adopted rates and charges for the calendar years 2023 and 2024 documents can be reviewed here.
Investing in Southern California
The adopted budget for fiscal years 2022/23 and 2023/24 appropriates $4.4 billion, including $600 million in capital investments to address aging infrastructure, respond to drought, and comply with regulatory requirements.
Among some of Metropolitan’s largest strategic investments in recent years:
Pure Water Southern California
Pure Water Southern California, formerly known as Regional Recycled Water Program, will take cleaned wastewater and further purify it to produce a new, drought-proof source of high-quality water for Southern California.
Conservation & Local Resources
Metropolitan has invested $1.5 billion in water conservation, recycled water and groundwater recovery since 1990.
Storage
Metropolitan has developed more than 5.5 million acre-feet of storage capacity – a 13 times increase in capacity since 1990.
Succession Planning
Metropolitan has an ongoing, dynamic effort to ensure the strongest possible future for Metropolitan by tapping the best talent, training employees, and developing leaders for the future.
Budget, Rates & Charges
For Metropolitan, a stable financial strategy is essential to managing imported water supplies and its local programs to provide its wholesale water service to its 26 member agencies, that serve 19 million people and support half of the state's economy. Metropolitan adopts two-year budgets. Our budget, rates, and charges reflect a careful balance between generating revenues in a fair manner to invest in the region's water future and managing rates through steady, modest increases that reflect the cost of service.
Metropolitan sets its water rates every other year to recover the cost of providing water service to its customers in an open and transparent public process, concurrent with the biennial budget review process. Our principal revenue source is water sales, which includes all revenues received by Metropolitan from charges for the sale and availability of water, including our water rates, readiness-to-serve charges, a capacity charge and wheeling/exchange transactions. The current pricing system, which itemizes various costs associated with water delivery, was established in 2003.
The following table summarizes rate components for treated and untreated water:
| Effective January 1st | 2024 | 2025 |
2026 |
| Supply Rate* | $290 | $313 | |
| Tier 1 Supply Rate($/AF)* | $332 | - | - |
| Tier 2 Supply Rate($/AF)* | $531 | - | - |
| System Access Rate ($/AF) | $389 | $463 | $492 |
|
System Power Rate ($/AF) |
$182 | $159 | $179 |
| Full Service Untreated Volumetric Cost ($/AF)* | $912 | $984 | |
|
Tier 1 |
$903 | - | - |
| Tier 2 | $1,102 | - | - |
| Treatment Surcharge ($/AF) | $353 | $483 | $544 |
| Full Service Treated Volumetric Cost ($/AF)* | $1,395 | $1,528 | |
|
Tier 1 |
$1,256 | - | - |
| Tier 2 | $1,455 | - | - |
| Readiness-to-Serve Charge ($M) | $167 | $181 | $188 |
| Capacity Charge ($/cfs) | $11,200 |
$13,000 |
$14,500 |
*On Nov. 14, 2023, at the FAIRP meeting, staff presented to the Board the status of the 2014 Purchase Order, which will end on Dec. 31, 2024. The adopted FY 2024/25 and FY 2025/26 Biennial Budget does not assume that the purchase order contracts will be renewed. As a result, the Tier 2 rate is not included in the proposed rates and charges for CYs 2025 and 2026; there is only a single supply rate. Metropolitan will revisit the purchase order commitments and similar structures as needed during the business model review through the CAMP4W process.
Definitions
Underlying Materials - Metropolitan has received requests in the past for data and other material used to generate or supporting Metropolitan's proposed rates and charges. Metropolitan provides this information for the current budget, rates, and charges for public review below (with proprietary formulas/code and employee-specific information removed).
The proposed biennial budget for fiscal years 2024/25 and 2025/26 and the proposed rates and charges for calendar years 2025 and 2026 are based on and supported by the information found in this section, as well as by the broader information available in the tab below at:
Adopted FY 2022/23 and 2023/24 Budget and CY 2023-2024 Rates and Charges
Adopted FY 2022/23 and 2023/24 Budget and CY 2023-2024 Rates and Charges
The adopted biennial budget for fiscal years 2022/23 and 2023/24 and the adopted rates and charges for calendar years 2023 and 2024 are based on and supported by the information found in this section, as well as by the broader information available at
Adopted FY 2020/21 and FY 2021/22 Budget and CY 2021-2022 Rates and Charges
Legal Documents, including Admin. Records
|
Property Tax Rate |
Fiscal Year |
|
0.0035% |
FY 2022/23 |
|
0.0035% |
FY 2023/24 |
View the Proposed Tax Rate FY 2024/25.
The determination regarding the applicability of the MWD Act Section 124.5 tax limit is supported by the information found here.
Financial Reports and Documents may be found here.
Investor Relations
Issuing bonds helps to fund critical infrastructure investments that the regional economy depends on. These include investments in a regional recycled water program, water quality improvements and clean energy upgrades. Metropolitan is committed to maintaining our strong bond ratings and adheres to a policy of transparency with our investor community and general public.
Contacts
Katano Kasaine
Assistant General Manager/Chief Financial Officer
(213) 217-7121
Adam Benson
Finance Group Manager
(213) 217-7121
Samuel L. Smalls
Manager of Treasury & Debt Management
(213) 217-7863
Bernadette Robertson
Controller
(213) 217-7547
Arnout Van den Berg
Section Manager
(213) 217-5771
Note: All information contained in the Financial Information pages is obtained from sources believed to be accurate and reliable. While all information presented is believed to be accurate and reliable, it is prepared without audit unless otherwise identified as audited financial information. Due to the possibility of human or mechanical error and other factors, this information is provided as is without warranty of any kind and MWD makes no representation, express or implied, as to the accuracy, reliability, completeness or timeliness of this information, and is not responsible for any loss or damage incurred by any party using this information. The information contained at this website has been included for general informational purposes only and no person should make any investment decision in reliance upon the information contained herein. This website and the information contained herein do not constitute an offer to sell or the solicitation of an offer to buy any securities.
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