Santa Margarita dam property proceeds to be used for rate stabilization fund, pension obligation drawdown

At one time the Fallbrook Public Utility District planned to use the proceeds from the sale of the Santa Margarita property to fund the Santa Margarita River Conjunctive Use Project, but a low interest rate for the Conjunctive Use Project led to an decision to use proceeds from the property sale as a contingency against dry years while also using some of the proceeds to meet their pension payment obligations.

FPUD’s board voted 5-0, Dec. 10, to utilize $6.2 million from the sale for the district’s rate stabilization fund while earmarking the other $3.8 million to offset unfunded pension obliga...