Carpinteria’s Water Future: Investing in Long-Term Security Despite Short-Term Costs – CVN Article, February 13, 2025
Written by: Robert McDonald, General Manager of Carpinteria Valley Water District
As California faces increasingly severe droughts, local water resources are under greater strain than ever before. The Carpinteria Advanced Purification Project (CAPP) is a bold step forward in securing a reliable water supply for the community, despite the initial financial investment required.
A Critical Investment in Water Security
CAPP will produce 1,000 acre-feet (AF) of water per year, supplying approximately 25% of the Carpinteria Valley Water District’s (CVWD) total demand. Given that Carpinteria’s water supply relies primarily on surface water, which is particularly vulnerable to prolonged droughts, this project is essential for the region’s long-term water security.
The Cost of Reliability
The project requires a significant upfront investment of $68 million, with an annual operating cost of $2 million. The project has already been awarded $26 million in grant funding and the remaining $42 million upfront costs will be financed through a 1.7%-interest loan. CVWD has aggressively pursued federal and state grant for the past five years. We believe it will be challenging to replicate our recent success in securing grants due to potential future federal and state budget constraints. To fund both the project and its ongoing operations, CVWD has implemented gradual rate increases, raising water rates by 7.5% per year in 2025 and 2026, with similar adjustments planned for 2027 and 2028.
Managing Costs for the Future
While these rate increases will impact customers in the near term, the financial burden is expected to stabilize by 2028 and begin to decline in 2035. This decline is driven by the scheduled retirement of significant debts, including obligations related to the State Water Project, which will ease financial pressure starting in 2036. Though rates will be higher for the next decade, the benefits of CAPP will extend far beyond, securing reliable water access for the next 50 years.
A Sustainable Choice for Generations to Come
Water security is one of the most pressing issues facing Carpinteria, and investing in CAPP is an investment in the community’s future. While short-term costs are unavoidable, the long-term benefits of a stable and sustainable water supply far outweigh the initial financial impact. By acting now, Carpinteria is ensuring that residents and businesses have the water they need to thrive for generations to come.
Residents are encouraged to stay informed and engaged as CVWD moves forward with this essential project. The increased cost is temporary, but the benefits will last a lifetime.