LA WATCHDOG – In April, the politically appointed directors of the Metropolitan Water District of Southern California approved the $2.3 billion budget that includes a rate increase of 6.2% for its 26 member agencies. It also announced a “small increase” in its special tax on properties that amounts to $12 a year for the average home in its 5,200 square mile service area.\
This benign announcement is environmentally unfriendly because it covers up the real cost of water. This sends the wrong price signal to Ratepayers, discouraging conservation and encouraging consumption of our scarce water resources. Just think of the well-publicized water shortages involving the Colorado River.
To help lower rates and hide the true cost of water, MWD levies a property tax on all the real estate in its service territory. Prior to 2024, the rate was 0.0035% of the Assessed Value of more than $4.2 trillion, or $35 for each $1 million of value. In 2004, the rate was doubled to $70…