Helix Water District board approves 2019-20 budget

The Helix Water District governing board last week approved an operating budget of nearly $91 million for the 2019-20 fiscal year that begins July 1.

The budget includes $11.5 million in capital improvements to keep the water moving through Helix’s 700-plus miles of pipeline, valves, hydrants and meters, and safely stored in tanks at the district’s various plants around East County. Total costs, including capital expenses and water purchases, will go up by about $1.2 million compared to 2018-19.

Nearly half of the district’s annual expenses go toward buying imported water. Helix made $40 million in water purchases in 2018-19, and because of the wet, rainy winter just experienced in Southern California, those purchases are expected to be down by about $230,000 for the coming year.

Labor and benefits make up another 26 percent of the budget, and will rise from $22.8 million to $23.7 million. Helix has 149 Helix employees.

According to Jennifer Bryant, the district’s director of administrative services, because of the higher-than-anticipated rainfall, the district is budgeting to use 2,000 acre-feet of local water in the coming year to help it offset imported water purchases. The district stores its water locally at Lake Cuyamaca, Lake Jennings and part of the city of San Diego’s El Capitan Reservoir.

One acre-foot is equivalent to nearly 326,000 gallons of water, which is enough to cover an acre of land -- about a football field -- with water one foot deep.

The quantity of water the district plans to treat and distribute in 2019-20 is the same amount it treated this year, 28,500 acre-feet, according to a report from Bryant and General Manager Carlos Lugo.

Helix customers have been using less water over the past few years, in response to state and local government mandates to conserve during times of drought. That lower water usage, however, also translates to less revenue for Helix.

The report said that state legislators have approved long-term conservation regulations that will further limit district water sales in fiscal year 2019-20 and beyond. The new legislation will require additional administration, reporting and resources in order for the district to remain in compliance, it said.

Helix also noted several large projects that are in its plans this year as part of its $15.4 million capital budget, including:
• Cast-iron pipeline replacement, $6.7 million (construction and design);
• Small valve replacement program, $3.1 million;
• Tank and pump station rehabilitation and replacements, $.3 million (design);
• Treatment plant improvements, $.5 million.

On the heels of the budget’s passage, the five-member board plans to set water rates for the coming year at its Aug. 7 board meeting. The board established a five-year rate ceiling starting in the 2015-16 fiscal year.

In late August, the district plans to insert a note to customers about the water rates. The rates will be effective starting on bills mailed in January for water used in November and December.

In February of this year, the district made a one-time $5 million voluntary prepayment to California Public Employees’ Retirement System as part of a four-year plan for $8 million in voluntary prepayments to CalPERS. The prepayments will reduce Helix’s unfunded pension liabilities by $20.3 million, saving the district and its customers $12.3 million, the district said.

Helix said that in June 2018, 68 percent of its employees’ pensions were funded. The district said that CalPERS expects the $5 million payment to increase the district’s funded status to 72 percent as of this month.

Helix serves more than 275,000 customers in a nearly 50-square-mile service area that includes La Mesa, Lemon Grove and El Cajon, as well as Spring Valley and parts of Santee, Lakeside and unincorporated San Diego County.