The CSD adopted a $4.11 million annual operating budget for Water services in Fiscal Year 2026/27. This funds day-to-day operations, including purchasing water from Tehachapi-Cummings County Water District (“TCCWD”), pumping the purchased water over the mountain into Bear Valley Springs, treating locally sourced potable water, and pumping water up to holding tanks to provide potable water to all elevations.

In addition to the operating budget, the CSD adopted a $2.78 million capital improvement budget to fund the water line replacement along Bear Vally Road in conjunction with the Bear Valley Road Replacement Project. It also includes tank and meter replacements for aging and outdated equipment, and the completion of the Water Master Plan, which will enable the CSD to identify the critical water infrastructure that needs to be replaced or upgraded to continue to meet regulatory standards and water needs.

If  Measure R passes in November, it will repeal the water rates adopted by the Board of Directors in March 2026, and result in an initial loss of approximately $352,000 in revenue for Fiscal Year 2026/27 (about $9.80 per parcel each month). The most likely impact directly on water services for the year would be elimination of the newly adopted flow testing standards for fire hydrants, a reduction in one water operator position, a fifty percent (50%) reduction in overtime budget, elimination of equipment and system replacements except those necessary to meet regulatory requirements, and a reduction in water purchases from TCCWD resulting in water use restrictions. The Board of Directors may be required to take the necessary steps to declare a Stage Two water shortage condition per District Code Section 7-4-3, which would pursue a twenty percent (20%) reduction in water use for all users.

If Measure R passes in November, it will also result in a loss of approximately $1.29 million in revenue for Fiscal Year 2027/28 (about $36 per parcel each month). The most likely impact directly on water services is slower response times to water leaks and higher water loss rates and expenses, elimination of non-emergency water line repairs, and elimination equipment and system replacements except those necessary to meet regulatory requirements.

If Measure R passes in November, it will result in a total loss of approximately $10 million in revenue over the five years of the rate plan (about $3,390 per parcel over the five years), which would result in no equipment and system replacements except those necessary to meet regulatory requirements.