Westlands Water District (District) proposes to impose water rates and charges, effective March 1, 2021 and upon adoption by the Board of Directors, for the purpose of collecting funds to pay costs related to water service. These water rates and charges are based on an estimated 0% Central Valley Project (CVP) allocation and other delivered water and may be paid by you or by your tenant. The District will collect pass-through costs subject to Federal and State contracts; agreements and laws for U.S. Bureau of Reclamation water rates; Reclamation Fund rates; San Luis & Delta-Mendota Water Authority water rates, charges, and costs; and State Water Resources Control Board fees. The District also proposes to collect pass-through rates, charges and costs from the San Luis & Delta-Mendota Water Authority for activity agreements related to the financing of the Delta Habitat Conservation and Conveyance Program (DHCCP) through water rates. Per Board Resolution No. 102-21, adopted on February 16, 2021, for the current and next four fiscal years, these pass-through rates, charges and costs are subject to change by action of the levying agencies, and the District will pass along any rate increases or decreases without another hearing on them.
The District also proposes to impose land-based charges, effective March 1, 2021 and upon adoption by the Board of Directors, for the purpose of collecting funds to pay: 1) debt service required as a result of District Water Supply acquisitions related to the Sagouspe settlement agreement, 2) extraordinary repairs and replacements of distribution system pipe, 3) drainage service area costs for representation of landowners in dispute with the United States over drainage, 4) Westlands Water Quality Coalition charges for representative monitoring and reporting under the Regional Water Quality Control Board’s Waste Discharge Requirements General Order for the Western Tulare Lake Basin Area, 5) debt service required for prepayment of the District’s remaining obligation for construction costs of the CVP, and 6) Sustainable Groundwater Management Act implementation, including groundwater meter installation.
This notice, including these rates and charges, is necessary due to the May 26, 2021, announcement by the Bureau of Reclamation that the CVP 2021 initial water supply allocation of 5% for South-of-Delta agricultural repayment and water service contractors was reduced to 0% and the municipal and industrial water service contractors allocation was reduced from 55% to 25% of historic use. If approved, Board Resolution No. 102-21 will be superseded, and the proposed rates and charges will be effective March 1, 2021.
Water Rates and Charges
The District budget will include funding for water costs, which includes a portion of Operation and Maintenance to provide water service to water users. If approved, water delivered by water users will be charged various water rates and/or charges per acre-foot for this water service. The water rates and charges imposed by levying agencies are determined and calculated by such agencies. All other rates and charges are determined on a per acre-foot basis for each water type’s associated cost divided by the estimated amount of the water type that will be delivered by water users. Rates and charges for Municipal and Industrial water are an aggregate of: 1) levying agency rates, and 2) rates and charges determined on a per acre-foot basis for each water type’s associated cost divided by the estimated amount of the water type that will be delivered by Municipal and Industrial water users.
District Water Supply Debt Service
The District budget will include funding for debt service related to financing the acquisition of District Water Supply in accordance with the Sagouspe settlement agreement. If approved, all irrigable lands in Pre-Merger and Merged lands, except lands acquired by the District or lands for which the permanent right to the allocation of the District’s water supply has been acquired by the District, will be charged in accordance with the agreement. The charge will be determined by parcel within each area, based upon the parcel’s irrigable acres in proportion to the total irrigable acres, after exclusions, in the respective area.
Extraordinary Repairs of Distribution System Pipe
The District budget will include funding for expenses related to the repair and replacement of certain distribution system pipe. If approved, all irrigable lands in Pre-Merger and Merged lands, except lands acquired by the District or lands for which the permanent right to the allocation of the District’s water supply has been acquired by the District, will be proportionately charged. The charge will be determined by parcel, based upon the parcel’s irrigable acres in proportion to the total irrigable acres, after exclusions, in Pre-Merger and Merged lands.
Drainage Service Area
The District budget will include funding for expenses related to costs for representation of landowners in dispute with the United States over drainage. If approved, all lands within the drainage service area, as presented in the Agreement between the United States Department of Interior and Westlands Water District for Land Retirement dated August 11, 1998, except government-owned lands, lands covered by a drainage easement acquired by the government, or lands acquired by the District, will be proportionately charged. The charge will be determined by parcel, based upon the parcel’s irrigable acres in proportion to the total irrigable acres, after exclusions, in the drainage service area.
Westlands Water Quality Coalition
The District budget will include funding for the Westlands Water Quality Coalition (Coalition) which was formed to serve as the third-party representative for landowners and operators of irrigated lands covered under the Regional Water Quality Control Board’s Waste Discharge Requirements General Order for the Western Tulare Lake Basin Area. If approved, all irrigable lands that have been enrolled in the Coalition will be proportionately charged. The charge will be determined by parcel, based on the parcel’s irrigable acres in proportion to the total irrigable acres, after exclusions, in the Coalition service area.
Capital Repayment Debt Service
The District budget will include funding for debt service of the San Luis Unit/Westlands Water District Financing Authority Revenue Bonds (Westlands Water District), Series 2020A and Subordinate Revenue Bonds (Westlands Water District), Series 2020B, which relate to financing the prepayment of the District’s remaining obligation for construction cost of the CVP. Pursuant to Section 4011 of the Water Infrastructure Improvements for the Nation Act (130 Stat. 1878), the United States and the District converted the District’s water service contracts to repayment contracts. Through the issuance of the San Luis Unit/Westlands Water District Financing Authority Revenue Bonds (Westlands Water District), Series 2020A and Subordinate Revenue Bonds (Westlands Water District), Series 2020B, the District paid to the United States the District’s remaining obligation for construction costs of the CVP.
The District will collect fifty percent of the budgeted amount for debt service through a land-based charge to irrigable acres and the other fifty percent will be collected as a per acre foot charge to all water delivered in the District. If approved, all irrigable lands in Pre-Merger and Merged lands, except lands acquired by the District or lands for which the permanent right to the allocation of the District’s water supply has been acquired by the District, will be proportionately charged. The charge will be determined by parcel, based upon the parcel’s irrigable acres in proportion to the total irrigable acres, after exclusions, in Pre-Merger and Merged lands.
Sustainable Groundwater Management Act (SGMA)
The District budget will include funding for the District, serving as the Groundwater Sustainability Agency’s (GSA), to implement the Westside Subbasin Groundwater Sustainability Plan (GSP). Formation of the GSA and development of the GSP are requirements of the SGMA. The District funded the majority of the GSP development from a state grant, and the remainder was funded from the District’s O&M rate. The District will reimburse the O&M rate from the SGMA land-based charge, once adopted. Thus, the SGMA land-based charge includes a rate component to reimburse the District for SGMA related expenses incurred through fiscal year 2019-2020 over a 5-year period, with four years remaining.
The SGMA land-based charge also includes a rate component to fund post-GSP adoption and implementation costs, including annual Department of Water Resources (DWR) reporting, groundwater, land subsidence and water quality monitoring, public outreach, and preparation of the five-year GSP update.
If approved, all lands in the Westside Subbasin, excluding the District-owned land and Disadvantage Communities, will be proportionately charged. The charge will be determined by parcel, based on the parcel’s gross acres in proportion to the total gross acres, after exclusions, in the Westside Subbasin.
Separate from the SGMA land-based charge, each non-exempt parcel with an active groundwater well, without a District flow meter, will be responsible for all expenditures associated with furnishing and installing a groundwater flow meter under Water Code section 10725.8, which may include all expenditures associated with modifications to the discharge system(s) necessary to meet specifications for District groundwater meters, in order to accurately record groundwater usage as part of the Projects and Management Action(s) of the Westside Subbasin’s GSP.
Calculation of Charges
Enclosed with this Notice is a listing of proposed water rates and charges that identifies the charge per unit that will be billed to District water users and landowners. Also enclosed with this Notice is a listing of proposed land-based charges that identifies for the landowner of record each parcel, the irrigable acres for each parcel, the charge per acre, and the calculated charge per parcel. The land-based charges for SGMA are charged on gross acres and appear on a separate listing included with this Notice. If the parcel’s irrigable acres are too small to generate a charge, a listing of proposed land-based charges will not be enclosed.
Public Hearing
The District will hold a public hearing on the proposed water rates, charges and land-based charges on Tuesday, August 17, 2021, at 1:00 p.m., or as soon thereafter as the matter may be heard, at the District’s Fresno Office, 3130 N. Fresno Street, Fresno, CA 93703. At this public hearing, the Board shall hear and consider all objections or protests, if any, to the proposed water rates, charges and land-based charges.
Landowners may file written protests against any or all proposed water rate(s), charge(s) and/or landbased charges with the District Secretary at or before the close of the public hearing. Protests must indicate the water rate(s), charge(s) and/or land-based charges being opposed and contain a description of the land owned sufficient to identify the land. If the name on the written protest is not shown on the last equalized assessment roll of the District as the owner of the land, the signer of the protest must also submit written evidence of ownership. Written protests may be mailed to:
District Secretary
Westlands Water District
P.O. Box 6056
Fresno, CA 93703-6056
If written protests against a proposed water rate, charge or land-based charge are filed by a majority of the affected landowners, the rate or charge will not be imposed. If you have any questions about the proposed water rates and charges, please call Customer Accounting at (559) 241-6250. If you have any questions about the proposed land-based charges, please call Stephen Farmer at (559) 241-6240.