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Due to a naturally occurring annual rainfall swings, strong conservation messaging, and a legal injunction reducing water transfers from northern California, San Diego County in Southern California, experienced a 25% reduction in water demands over a three year period. These reductions also coincided with the economic downturn, creating an anti-rate increase political environment and limiting utility managers' abilities to react to lowered revenues. These conditions have financially impacted the City of Oceanside Water Utilities Department, a coastal city, which oversees water, wastewater, and stormwater operations. Each of the utility funds is reliant upon volumetric based rate revenues, which have decreased with water conservation.Despite the current conditions, the City of Oceanside is looking towards the future and undertaking a multi-prong approach to secure more reliable, local water supplies, maintaining system infrastructure, and sustaining and enhancing its financial condition. The City is integrating financial optimization modeling to guide decision making in these efforts.

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