The Valley Water Board of Directors adopted the Fiscal Year 2019-2020 Operating and Capital Budget on Tuesday, May 14, 2019. Along with the $528.9 million budget, the board also adopted the 5-year Capital Improvement Program (CIP), and a water rate increase of 6.6 percent for most of the county, and 6.9 percent for the part of the county south of San José, resulting in about a $2.93 and a $1.07 increase respectively per month for the average household.
The fiscal year runs from July 1, 2019 to June 30, 2020. The budget for the upcoming year includes financing of long-term capital improvement plans to support infrastructure needs and funding for the repayment of long-term debt.
“Valley Water recognizes the importance of strong infrastructure, and this budget reflects that,” said Board Chair Linda J. LeZotte. “Our board showed strong leadership in ensuring we have a balanced, fair, sustainable budget to keep water flowing throughout Santa Clara County in both wet and dry years. We still encourage everyone to make conservation a way of life. Reducing water use now will reduce the need for long-term investments to secure new supplies, and that will minimize rate increases in the future.”
Included in the $528.9 million is $204.4 million for capital expenses and $405.3 million for operations offset by $80.8 million in reimbursements for administrative support costs.
The CIP describes capital investments for the next five fiscal years. These investments are necessary to maintain and improve our water supply and flood protection infrastructure, and to support Valley Water’s mission of environmental stewardship.
The FY 2020 CIP includes 67 capital projects for a total estimated cost to Valley Water of about $4.4 billion, with an additional $1.2 billion expected from outside sources, for a total of $5.6 billion. This amount is the total costs for all the projects, not what Valley Water expects to expend in the next five years. Many of these projects will take longer than five years to complete. The total value of construction contracts planned for award during the next five years is about $1 billion, which will generate or sustain between 10,000 and 20,000 jobs.