Water Resources and Conservation
The Dana Reserve will contribute to the expenses of the supplemental water project and will pay over $36 million in water and sewer connection fees plus $4.5 million in capital charges, creating a slight reduction for current ratepayers. Since 2007 the Nipomo Community Services District (NCSD) has reduced groundwater pumping by importing water from Santa Maria and through conservation efforts. NCSD has completed a water supply study that projects water needs for all users at full build-out, in the NCSD service area, along with the full build out of the Dana Reserve and found that groundwater pumping will continue to be reduced from the 2019 levels. With the Dana Reserve, groundwater pumping will be reduced by 33% and current ratepayers will see their sewer bill reduced by 30%.
Dana Reserve will use zero groundwater now or in the future and with the completion of the housing development, more water will be returned to the basin than is extracted for the first time ever.
Dana Reserve Reduces Groundwater Pumping
Dana Reserve allows the NCSD to further reduce groundwater pumping by purchasing previously contracted imported water, saving costs for the current ratepayers and contributing recharge water to the basin.
Nipomo’s Water Future
Due to the cyclical drought conditions experienced in California, and the threat they pose to the Nipomo Groundwater Basin, NCSD took steps to meet the current water needs while planning for the future of the Nipomo community.
Additional Imported Water
NCSD is contractually obligated to import a minimum additional 700-acre feet of water. This is a 73% increase from current imported volumes. If new connections are not added, the current rate payers will be responsible for the cost of the additional water.
NCSD has invested in the pipes and pumps needed to bring the import water onto the Nipomo Mesa, including the cost of improvements, and the cost of bonds (debt service) issued to build the supplemental water project and the wastewater plant rehabilitation. Current NCSD combined debt service is $1.355 MM for $19 MM debt.
The Dana Reserve will contribute to the expenses of the supplemental water project. Dana Reserve will pay over $30 MM in water and sewer connection fees.