Understanding the Current State of SLVWD
Proponents of Measure U argue in part that SLV residents need this initiative in order to provide more direct control over their local water district. But this argument, in turn, requires that voters understand the underlying issues that SLVWD is currently grappling with.
On the bright side, SLVWD has a generally adequate supply of local water consisting of surface water from streams in the winter and groundwater that is pumped in the summer and replenished by winter rains. The District still has some challenges remaining to complete its Conjunctive Use Plan (which ensures that groundwater is not depleted over time), but it should be able to do so in the next few years.
However, SLVWD is facing two more substantial challenges, one common to water districts across California, and a second unique to SLVWD.
Statewide Challenges: Deferred maintenance and ballooning costs
Water districts across the state have increased their rates dramatically over the past decade, simply to remain financially solvent. This is a direct consequence of increasing costs together with decades of artificially low rates that have left districts with insufficient funds for ongoing infrastructure maintenance and replacement. The State has provided significant auxiliary funding to assist struggling districts, but not nearly as much as these districts ultimately need.
Local Challenges: Mountainous terrain, CZU Fire, and winter storms
Like many other water districts, SLVWD has repeatedly deferred infrastructure development in order to utilize existing funds for critical operational expenses. But SLVWD is also confronted by unique challenges. For one thing, the valley’s mountainous terrain makes it more expensive to provide water here than in many other parts of the state. Another complication stems from the 2020 CZU Fire and subsequent severe winter storm damages.
Local Challenges: Staff retention
Perhaps the most alarming challenge facing SLVWD today is retaining and attracting qualified Staff. In recent years, SLVWD has experienced a worrisome stream of senior staff departures. Four of these individuals are currently working for Scotts Valley. Two departing staff members openly cited an aversive work environment that they attributed to SLVWD Board member Bob Fultz (a major advocate for Measure U) as a key factor in their departure. As of this writing, SLVWD is critically understaffed, and this is making it difficult for the District to function effectively.
Local Challenges: Consolidation
Lastly, SLVWD is in the process of absorbing two small mutual water companies north of Boulder Creek (Bracken Brae and Forest Springs), with a third, larger, neighboring, private company (Big Basin) currently in receivership. Everyone agrees that these consolidations are in the best interest of the larger SLV community, but adequate funding for these efforts has yet to be identified. SLVWD is currently poised to move ahead with Phase 1 of the consolidation with Bracken Brae, but escalating cost estimates for the full consolidation and potential cash-flow concerns are a persistent problem.
The bottom line is that even though SLVWD has recently made substantial progress on long-deferred infrastructure improvements, it remains in a very precarious state. Independent of Measure U’s strengths or weaknesses, this initiative is virtually certain to make finances even more unstable.
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