Tax rate set to raise property tax revenue for the State Water Project (SWP) payment

Each year, the Board must adopt a resolution setting the ad valorem tax rate to collect from ratepayers the funds needed to pay the State Water Project (SWP) payment, which is a significant annual obligation of the District. This rate is to be provided to the Board of Supervisors of Kern County and to the Kern County Auditor-Controller no later than August 1st.

The tax revenue is used exclusively to pay the District’s financial obligations for the State Water Project per the invoices received from the Kern County Water Agency (KCWA).  KCWA is billed by the California Department of Water Resources (DWR) and they pass those charges to their member units in proportion to each member unit’s Table A Allocation.  In effect, this tax pays the District’s cost for water up to the point it is pulled from the California Aqueduct.  In addition to considering costs, the District considers its reserve balances when calculating the revenue required to meet its SWP obligations.