Staff Report
City Council
Item No. 3.G
Meeting Date: March 25, 2026
From: Erick Becerril, Economic Development Manager
Title: Consideration of Support for Senate Bill 872 (SB 872) – State Water Infrastructure Funding
RECOMMENDATION:
Staff recommends that the City Council adopt a position of support for Senate Bill 872 (SB 872) and authorize the City Manager to sign a letter of support on behalf of the City of Cathedral City.
BACKGROUND:
On March 9, 2026, the City of Cathedral City received a formal request from the Desert Water Agency (DWA), transmitted by Victoria Llort, Director of Public Affairs and Conservation/Public Information Officer, requesting the City’s support for Senate Bill 872 (SB 872).
On March 11, 2026, the City received additional correspondence from the Coachella Valley Water District (CVWD), through its Government Affairs Program Manager, confirming its support for SB 872 and encouraging regional partner agencies to adopt similar positions.
SB 872, authored by Senator Jerry McNerney, proposes a long-term funding strategy to address critical infrastructure challenges within California’s State Water Project (SWP) and the Sacramento-San Joaquin Delta.
DISCUSSION:
Senate Bill 872 proposes a long-term funding commitment to address critical deficiencies in California’s water infrastructure by appropriating $150 million annually over 20 years to the Department of Water Resources for State Water Project (SWP) conveyance repairs, along with an additional $150 million annually for Delta levee improvements. These investments are intended to restore lost capacity caused by land subsidence and reinforce aging infrastructure that is essential to statewide water delivery.
The State Water Project is a foundational component of California’s water system, serving approximately 27 million residents and supporting more than 750,000 acres of irrigated agriculture. For the Coachella Valley, the SWP plays a critical role in long-term water reliability through exchange agreements with the Metropolitan Water District, even without a direct physical connection. CVWD has identified that subsidence-related capacity reductions could directly impact regional water reliability and limit the State’s ability to respond to ongoing challenges associated with Colorado River supply constraints.
Supporting agencies have emphasized that failure to address subsidence and levee vulnerabilities will lead to increased water costs, reduced operational flexibility, and heightened risks to public safety, the environment, and the broader economy. Climate- related pressures, including prolonged drought, extreme precipitation events, and sea level rise, further exacerbate these risks and increase the urgency of long-term infrastructure investment. The proposed funding strategy is intended to proactively address these challenges before they require more costly emergency responses.
From a local perspective, water reliability is directly tied to Cathedral City’s economic development, housing production, and long-range planning efforts. Alignment with regional partners such as DWA and CVWD strengthens intergovernmental coordination and ensures the City remains engaged in policy decisions that have direct implications for local residents and businesses. Supporting SB 872 positions the City as a collaborative partner in advancing sustainable, reliable water infrastructure at both the regional and statewide levels.
FISCAL IMPACT:
There is no direct fiscal impact associated with adopting a position of support for SB 872.
FIVE-YEAR STRATEGIC PLAN:
This supports Goal B – Community Investment where the objective is that Cathedral City roads, gateways, and other infrastructure are well planned, designed, constructed and maintained.
ATTACHMENTS:
1. Exhibit 1 - CVWD SB 872 Letter of Support
2. Exhibit 2 - Draft Cathedral City SB 872 Letter of Support