search menu language expand_more Local Water Agency Director Login print mail Budget & Finance To keep our vast water delivery system running smoothly and invest to meet Southern California’s water demands for generations to come, Metropolitan maintains an annual operating budget of nearly $2 billion. We make forward-thinking investments — in supplies, in storage, in conservation and in treatment — and we responsibly maintain our existing infrastructure. These strategically important programs together provide Metropolitan operational flexibility to store water when it is available and provide it to our communities in dry years. Our water rates are established to recover the cost of providing this water service in an open and transparent public process as part of the biennial budget. Metropolitan’s strategic investments in a diverse portfolio of water supplies and storage have helped ensure the region has a reliable water supply amid California’s highly variable annual precipitation and snowpack. Investing in Southern California Our most recent $3.9 billion biennial budget (Fiscal Year 2020/21 and FY 2021/22), includes capital spending about $500 million, largely to rehabilitate existing facilities so they are well-maintained and seismically-sound. More than half of these projects are funded from operating revenues, rather than debt financed. Among some of Metropolitan’s largest strategic investments in recent years: Regional Recycled Water Program In partnership with the Los Angeles County Sanitation Districts, a demonstration facility in Carson has been built to test new treatment methods to purify wastewater. The facility could pave the way for one of the nation’s largest water recycling facilities. 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. Responsibly Managing Our Finances Metropolitan has a long history of responsible fiscal management and maintains some of the nation’s highest credit ratings among government agencies S&P: AAA Fitch: AA+ Moody’s: Aa1 Budget, Rates & Charges For Metropolitan, a stable financial strategy is essential to managing imported water supplies to member agencies that directly or through sub-agencies 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. Biennial Budget - FY 2020/21 and 2021/22, including Ten-Year Financial Forecast Cost of Service - FY 2020/21 and 2021/22 Additional Budget, Rates and Charges Documents Financial Reports & Documents 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 2020 2021 2022 Tier 1 Supply ($/AF) $208 $243 $243 Tier 2 Supply ($/AF) $295 $285 $285 System Access Rate ($/AF) $346 $373 $389 Water Stewardship Rate ($/AF) $65 - - System Power Rate ($/AF) $136 $161 $167 Full Service Untreated Volumic Cost ($/AF) Tier 1 $755 $777 $799 Tier 2 $842 $819 $841 Treatment Surcharge ($/AF) $323 $327 $344 Full Service Treated Volumic Cost ($/AF) Tier 1 $1,078 $1,104 $1,143 Tier 2 $1,165 $1,146 $1,185 Readiness-to-Serve Charge ($M) $136 $130 $140 Capacity Charge ($/cfs) $8,800 $10,700 $12,200 Definitions Tier 1 Supply Rate – recovers the cost of developing and maintaining a reliable water supply Tier 2 Supply Rate – set at Metropolitan's cost of purchasing water transfers north of the Delta, this rate tier encourages the maintenance of existing local supplies and the development of cost-effective local supply resources and conservation System Access Rate – recovers costs associated with the interconnected regional delivery network necessary to deliver water to meet member agencies' average annual demands. Included are the costs of conveyance and distribution facilities System Power Rate – recovers Metropolitan's power costs for pumping supplies to Southern California Water Stewardship Rate – recovers the costs of providing financial incentives for existing and future investments in local resources, including conservation, recycled water and groundwater recovery Treatment Surcharge – recovers the costs of treating imported water Readiness-to-Serve Charge - a fixed charge that recovers the costs of providing emergency service and available capacity to meet outages, emergencies and hydrologic variability Capacity Charge – recovers the cost of providing peaking capacity within the distribution system which Metropolitan owns or has the right to use Additional Resources on Rates keyboard_arrow_down Property Tax Rate keyboard_arrow_down Contacts The Office of the Chief Financial Officer Katano Kasaine Assistant General Manager/Chief Financial Officer (213) 217-7121 Treasury & Debt Management Samuel L. Smalls Manager of Treasury & Debt Management (213) 217-7863 Budget Lisa St Regis Unit Manager (213) 217-7533 Controller Bernadette Robertson Controller (213) 217-7547 Revenue & Budget 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. Find a Budget & Finance Document search Show Filters keyboard_arrow_down BE INFORMED, BE INVOLVED Facebook Instagram Twitter LinkedIn YouTube @mwdh2o Media Newsroom Press Releases Blog Fact Sheets & Publications Videos Doing Business With Us Professional Services Construction Services/Equipment Procurement Projects in Your Community Business Outreach Program Real Property Assets Public Notices Join Our Team Careers Apprenticeships & Internships Job Descriptions External Jobs Internal Jobs Salary Chart Resources Director Login Employee Login MWD Federal Credit Union Bewaterwise.com MWD Innovates Accessibility Transparency Privacy Policy