FALLBROOK, Calif. — The communities of Fallbrook and Rainbow are requesting to join a water district based in Riverside, saying water in San Diego is too expensive.
However, those who oppose the move say it will leave others paying $200 million more for water over the next decade.
A vote is expected at the County Administration Center on Monday that would address the request from Fallbrook and Rainbow to get their water from an agency in Riverside County.
"San Diego County's economy runs on water," Jerry Sanders said, from the Chamber of Commerce.
Rainbow Municipal and Fallbrook Public Utility are the two out of 24 San Diego County Water Authority Districts looking to detach from the mainstream water supply and instead get water from a wholesaler in Riverside County.
The two North County communities say it would save residents there close to $8 million a year and help the agriculture industry, which has dried up due to rising water costs. But other local leaders want them to stick with San Diego's supply, saying otherwise, it will cost everyone else $200 million more over the next decade if they stop paying their share.
"We have come together over the last two decades, to invest in water quality and infrastructure, to ensure safe, clean and reliable water, these two agencies want to skip out on the bill," San Diego Mayor Todd Gloria said.
CBS 8 spoke with LAFCO - the Local Agency Formation Commission - which serves as the watchdog group overseeing this proposal.
"For families already struggling, we understand this would be a concern for them," said Priscilla Mumpower from LAFCO.
However, LAFCO is still recommending allowing the detachment and change of its water supply, but with conditions, such as a five year exit fee of $24 million to help the San Diego County Water Authority offset the lost revenue and have time to come up with new revenue streams or cost saving measures.
"The exit fee they're proposing is based on years-old data and questionable estimates, that understate the cost by 50%," Water Authority Board Chair Mel Katz said.
"They face a decision that will impact generations of ratepayers," Mayor Gloria added.
If Rainbow and Fallbrook do switch their water source it's expected to save families there $23.50 a month, but again those opposed are asking LAFCO for a no vote, to help protect the majority of ratepayers.
"Right now, as it stands if Fallbrook and Rainbow leave, each and every household, would see an increase of a dollar a month."
If approved on Monday, it would then go to the voters living in Fallbrook and Rainbow. Those opposed want it to be a countywide vote.
Here is a statement by Jack Bebee - the General Manager for the Fallbrook Public Utility District:
Not surprisingly, the Water Authority’s last-minute forecast — like its water demand projections over the years and desalinated water cost estimates — is grossly inaccurate. San Diego LAFCO has done an independent review of previous Water Authority financial analysis and found them to be inaccurate. The fact is, the impact of our detachment will be offset by an exit fee for five years, as recommended by LAFCO staff, and after that, if the CWA fails to adjust its budget in response to our detachment – which would be minimal — around one dollar per household per month in the city of San Diego. The impact could be reduced to nothing if the Water Authority makes basic adjustments to reduce costs during the five-year transition. While we appreciate the Water Authority’s sudden concern for ratepayers, their past actions and mis-forecasting have resulted in San Diego County having among the highest water rates in America. Their recently approved double digit water rate hike, which was supported by Mayor Gloria, will increase water rates by $700 million alone over the next decade. We simply cannot afford to continue paying these astronomical water costs and our farmers and ratepayers certainly can’t pay the $200 million, or $7,500 per household, on top of their cost to provide us water as anticipated by the Water Authority. Our agriculture economy has suffered enough and there will be no agriculture left in North County based on what the additional revenue the Water Authority is projecting to generate from them in the future.
We will continue to pursue our legal right that all members of the Water Authority agreed to on formation of the agency to secure less expensive water elsewhere, which will bring much-needed relief to our ratepayers and save our important agriculture economy.
We hope that LAFCO approves their staff’s recommendation on Monday.
Watch Related: San Diego County Water Authority approves 9.5% water rate hike (Jun 23, 2023)