Grant funding has been a significant source of funds to construct capital facilities. Overall, grants will reduce the local costs of the two projects below by about one-half.
The City of Watsonville received a $20 million Title XVI grant to fund the Recycled Water Facility, which will provide 4,000 acre feet of year of new supply (construction to begin winter 2006).
In 2004, the Agency received a $23 million Proposition 13 grant for funding of the Coastal Distribution System (CDS) and a portion of the import pipeline. This grant was phased so that $16.3 million is available for the current construction project, and the balance available to the import pipeline when details of that project are finalized.
Support for the Harkins Slough Project project came from low-interest California State Revolving Fund loans.The Agency acquired water rights to flood flows from Harkins and Watsonville sloughs in the late 1990’s. The Harkins Slough Project was then developed to divert up to 2,000 acre-feet per year of winter flow into a recharge basin where the water is percolated. During the summer months, the water is extracted and delivered to coastal farmers.
Funding for projects and Agency programs is generated through two sources of revenue: 1) an augmentation fee of $160 per acre-foot for every acre-foot of groundwater pumped from the basin, and, 2) a management fee of $18 per year per residential parcel and $20 per year per commercial parcel, which is collected on the tax rolls.
To see revenues for the current budget click here. For audited financial statements for the previous fiscal year, click here.