Dixon Solano Water Authority Financial Position

By Glen A. Grant

The Dixon Solano Water Authority (DSWA) that provides potable water to much of Dixon is in serious financial trouble. Putting DSWA back on sound financial footing is a top priority for me.

DSWA is in serious financial trouble. It cannot pay its bills on time. It has no money in reserve, to pay for capital improvements or to make repairs, should there be major breakdowns. This problem needs to be solved and fast.

SID and the City have always sought ways to reduce the costs of water service and they continue to do so. Costs for water service have grown in Dixon but more slowly than inflation due to the efforts of all parties to reduce costs.

About four years ago, the board members of SID became concerned that DSWA's expenses were exceeding its income. The SID Board pushed its partner to prepare a financial plan that would guide DSWA to a balance of expenses and revenues and maintain adequate reserves for unforeseen expenses. Unfortunately, turnover of Dixon staff and a reluctance by the Dixon City Council to address the issue, prevented the DSWA Board from taking action. Finally, in 2011, the DSWA Board authorized development of a financial plan. That plan spells out a program that will restore DSWA's financial stability. It is critical that we work together to implement that plan. The plan includes rate increases. If we are to maintain reliable, high quality water in Dixon, it is impossible to avoid some rate increases. Water will still be cheaper for DSWA customers than for CalWater customers and customers of most water systems in Northern California.

I do not like the idea of increasing water rates, but when faced with the choice of insolvency for the DSWA water system and rate increases, I am forced to support rate increases.