Carmichael Water District and Sacramento Suburban Water District Combination Study

Invitation to the public information workshop on January 24, 2024 at 6:30 p.m.

Visit carmichaelwd.org/AgendaCenter for a link to a virtual option for the Public Information Workshop, once available. 

Background

Combination Opportunities: The goal in examining combination is to see how merging the two districts might encourage efficiencies, reduce costs, improve water supply reliability, and enhance customer service.

Challenges: The water industry and local communities are facing several changes and challenges, including the projected impacts of climate change on water supplies and increasing regulations that will potentially make it difficult to keep rates affordable. 

Discussions: In 2021, CWD and SSWD established a committee to explore maximizing water supply reliability and cost savings through a potential combination. They hired an independent consulting firm to conduct a Combination Study Business Case Analysis, examining industry trends, customer service, staffing, finances, and more. The analysis found no compelling deterrents. 

The districts moved forward with the next level of analysis, developing a Further Analysis Report (“Further Analysis of Combining Carmichael Water District and Sacramento Suburban Water District”) to further address any unknowns and questions raised during combination discussions. The results of this report will be discussed during the Public Meetings. 

Combination Benefits

Benefits identified during combination discussions include: 

  •  Enhanced Water Supply Reliability: Combining SSWD's groundwater resources, as well as surface water entitlements, with CWD’s surface water rights can lead to improved water supply reliability with a more balanced water supply portfolio of both surface and groundwater, especially during droughts.
  • Long-Term Savings: While there may be initial start-up costs associated with the combination, these costs are an investment in a more cost-efficient future. Start-up expenses are expected to be offset by the future savings generated by reduced administrative costs and improved economies of scale.
  • Economies of Scale and Efficiency: A combined district can achieve cost savings through economies of scale. This includes shared administrative and operational costs such as employee benefits, streamlined processes, and optimized resource utilization. This efficiency can lead to potential savings in operating expenses, which can be passed on to customers through stable rates.
  • Financial Stability: Combination can result in a more financially robust district, with a larger customer base and shared financial reserves. This can provide a cushion for capital investments and unexpected expenses, ultimately benefiting customers by enhancing the financial stability of the district.

 Public Information Workshop: January 24, 2024

CWD held a public workshop on the combination study on January 24, 2024

View the January 24, 2024 Presentation Here (PDF)

Public Information Workshop: June 15, 2023

CWD held a public workshop on the combination study on June 15, 2023.

View the June 15, 2023 Presentation Here (PDF)

Download the June 15, 2023 Workshop Video Here

Sacramento Suburban Water District held a workshop on the combination study on June 21, 2023. Information can be found here.

Learn More

Summary: Exploring the Combination of Carmichael Water District and Sacramento Suburban Water District

Factsheet: Perceived Advantages and Disadvantages to Combination

Frequently Asked Question: Fluoride

Map of Voting Divisions

Comment Sheet

Final Business Case Study

Further Analysis Report (“Further Analysis of Combining Carmichael Water District and Sacramento Suburban Water District”)

Further Analysis Report Exhibits

Key Benefits from Combination

Frequently Asked Questions About Combination Discussions

Stay Updated and Share Your Thoughts

You are welcome to attend public meetings discussing combination opportunities. You can review the meeting information and agenda on our Agendas & Meetings page.