Water District Board Reduces Property Tax Rate for State Water Project

Action to reduce property tax rate by nearly 64% improves affordability for property owners and renters while continuing work on major water supply infrastructure.

The San Bernardino Valley Municipal Water District Board of Directors unanimously voted to lower the Agency’s annual property tax rate by nearly 64%, landing at $0.04 per $100 of assessed value. The regional water agency and State Water Contractor brings supplemental water supplies from Northern California into its 353 square mile service area, providing water to 15 retail agencies who serve homes and businesses.  In most years, approximately 75% of water is sourced from existing local surface and groundwater supplies, while 25% is imported from Northern California through the state’s water conveyance network to meet local water needs, a system known as the State Water Project (SWP).

Each year, the Board sets the annual property tax rate after a thorough review of current State Water Project costs, debt, and long-range infrastructure needs.  President T. Milford Harrison stated, “For more than 70 years, we have been careful stewards of taxpayer dollars and our region’s water future. This vote continues that legacy of making decisions that ensure reliable water for residents today and for future generations.”

San Bernardino Valley Municipal Water District is the fifth largest of the 29 State Water Contractors who fund the infrastructure and have an annual entitlement of up to 102,600 acre-feet of water per year, enough to supply over 300,000 households for a year. The property taxes collected each year by San Bernardino Valley were authorized by voters in the 1960’s to pay for costs of the SWP; infrastructure which includes Oroville Dam, San Luis Reservoir, the California Aqueduct, and nearby Lake Silverwood. San Bernardino Valley serves water to agencies spanning from Fontana to Calimesa.  Property taxes are restricted to funding the Agency’s obligations associated with the State Water Contract.

The Board approved a rate of $0.04 per $100 of assessed property valuation, down from the previous rate of $0.11, a reduction that reflects the Board’s continued commitment to easing costs for property owners by relying on other sources of funding to continue the Agency’s work; including funds received following the dissolution of Redevelopment Agencies and the Agency’s earned interest. Reducing the amount of property tax collected will leave nearly $60 million in the hands of taxpayers this year.

Workshop materials and the full Board action are available on the Agency’s website at www.sbvmwd.com.