Carlsbad city reported to be delaying desalination deal

Objections by City of Carlsbad to the water purchasing deal between San Diego County Water Authority (SDCWA) and Poseidon Resources relating to the Carlsbad desalination plant are reported to have delayed talks to finalise the deal.

According to a report in the North County Times, Carlsbad city officials believe that the deal will cost the city millions of dollars in lost tax revenue compared with the original arrangement involving nine cities and agencies, which broke down when SDCWA launched a lawsuit against the Metropolitan Water District over water rates.

Carlsbad is the only one of the nine not to agree to the new deal, says the report. The SBCWA's water planning committee is scheduled to talk on 28 October 2010 about a written report on the desalination project's status. The report says Carlsbad has told authority officials it has no plans to give its approval until the city's concerns over the potential loss of tax revenue are met.

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