Estimation of Ability to Pay for Levee Improvements

摘要

In the California Sacramento-San Joaquin Delta (Delta), levees reduce risk of flooding and potential for injury, loss of life, property, and infrastructure damage. Levees can also improve water supply reliability and water quality, and protect aquatic habitats. The Delta Plan, adopted in 2013, recommends that the Delta Stewardship Council (Council) develop a delta levees investment strategy (DLIS) to identify funding priorities for State investments in Delta levees. Among the economic considerations in establishment of funding priorities are (1) cost allocation procedures, and (2) determination of Reclamation District (RD) ability to pay (ATP) for levee improvements. The authors present a practical method for estimation of ATP for levee investments based on readily available RD financial information, including annual levee expenditures and income streams derived from sale of crops and rent value of agricultural land. A pilot application of the method is described and, based on the results, potential strategies suggested for: (1) cooperative financing of levee investments, and (2) adjustment of subventions (State support of annual levee maintenance expenses) to reduce acute inequalities in ATP.