After twenty years at or above the current level, the San Bernardino Valley Municipal Water District Board of Directors voted to lower its property tax rate. Valley District, a wholesale water provider and State Water Contractor, is required to set a property tax rate each fiscal year for the debt service fund on its State Water Contract.
The property tax is established by the California Water Code in order to ensure sufficient funding for the District’s long-term responsibility to supply water to its constituents from the State Water Project – a system of infrastructure that captures and delivers water from Northern California to the San Bernardino Valley. As one of 29 State Water Contractors, Valley District is jointly responsible for the construction, operations and maintenance of numerous large pieces of water infrastructure, including Oroville Dam and the California Aqueduct. Several large investments in state water supplies are looming on the District’s horizon, including the Sites Reservoir, a new 1.5-million-acre-foot storage facility in Northern California and the Delta Conveyance Project, which will ensure the reliable conveyance of Valley District’s state water allocation through the Sacramento-San Joaquin Delta via a large underground tunnel. Together these two projects will help make the District more resilient to the potential effects of climate change, including drought, saltwater intrusion, subsidence in the Delta, and regulatory uncertainty.
Due to Valley District’s 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, the District is in a position to meet all its new infrastructure commitments and maintain a healthy emergency reserve fund for the foreseeable future. The Board of Directors believes now is the time to lower its tax rate from $0.1425 to $0.1300 per $100 of assessed property value, saving property owners millions of dollars.
“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. These reserves are used to fulfill the Board’s directive 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. Valley District is governed by a five-member, locally elected Board of Directors which includes Vice-President June Hayes representing Division I, Director Gil Botello representing Division II, Director Susan Longville representing Division III, Treasurer T. Milford Harrison representing Division IV, and President Paul Kielhold representing Division V. Each Director serves a 4-year term.
For more information, please visit www.SBVMWD.com, email kristeenf@sbvmwd.com or call 909-387-9200.