HomeMy WebLinkAbout2001-07-10; Municipal Water District; 503; Update on Lawsuit - Preferential RightsCARLSBAD MUNICIPAL WATER DISTRICT -AGENDA
4B# ,703
MTG. 07/10/01
DEPT. CMWD
TITLE-
--AN UPDATE ON SAN DIEGO COUNTY WATER
AUTHORITY’S LAWSUIT FILED AGAINST THE
METROPOLITAN WATER DISTRICT REGARDING
PREFERENTIAL RIGHTS
RECOlWMENDED ACTION:
This is an informational item and there is no recommended action at this time.
ITEM EXPLANATION:
The Metropolitan Water District Of Southern California was formed by the state legislature in 1928.
At that time the Metropolitan Water District used property tax revenue to generate the money it
needed to build the Colorado River aqueduct.
To fairly divide the rights to water, the Metropolitan Water District promised each of its
member agencies an entitlement -a preferential right -to a percentage of
Metropolitan’s water equal to the amount each agency had contributed in property tax.
Los Angeles, with the largest amount of development, contributed more in property taxes
than any other agency, and got the highest preferential right to water.
However, by the 1970’s, the Metropolitan Water District stopped using property taxes as its
revenue base---the money it needs to maintain its 775mile system of pipelines, pump stations,
reservoirs, and treatment plants. Instead, it switched to raising the bulk of its revenues by water
sales. But at the same time the Metropolitan Water District did not change each agency’s
traditional preferential right to water, meaning each agency’s preferential right still reflected
property tax contributions ---a much smaller portion of the Metropolitan’s current revenues --
instead of water purchases.
The San Diego County Water Authority now claims that its purchases of water represent the
largest percentage of the Metropolitan Water District’s water sales and, as a result, the Authority
contributes more money to maintain the Metropolitan Water District’s system of pipelines than
any other agency. However, their preferential right is still dwarfed by Los Angeles.
After years of attempting to rectii this perceived inequity without success, the San Diego
County Water Authority has filed a lawsuit against the Metropolitan Water District in an attempt
to have the courts remedy this situation.
Staff will be presenting a short update on the status of this lawsuit.
FISCAL IMPACT:
This is an informational item and there is no fiscal impact at this time.
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