The median residential bi-monthly water bill in the Scotts Valley Water District would increase 27 percent in December under a five-year rate plan proposed by the Scotts Valley Water District.
The plan is the result of a restructuring of the water rate formulas based on actual costs and long-range budget needs, plus a recognition that current water revenues barely cover the costs of pumping, treating and distributing water to Scotts Valley homes.
A family that uses 8,000 gallons of water in two months – the district median for a single family – currently pays $83.96 every two months, according to the district. This would increase to $106.40 every two months in December, an increase of about 27 percent. Individual rates would vary.
The new rate structure:
Lowers the use thresholds in the residential rate tiers, meaning higher tier rates kick in faster
Increases per-gallon water usage rates for residential customers, from 32 to 66 percent
Sets uniform rates for non-residential customers that match Tier 3 residential rates
Increases the basic bi-monthly meter charge by 21 percent for a 5/8-inch water line
The plan accepted by the water district board Oct. 13 proposes five years of annual rate hikes: the December 2016 increase, followed by a 15 percent overall rate increase in December 2017, then three years of 10 percent increases.
Water district customers have 45 days – the legally required comment period – to weigh in on the proposed rates, which would become effective immediately if adopted by the board at its meeting on Thursday, Dec. 8.
A study by the City of Santa Cruz this year showed that water rates in Watsonville and Scotts Valley were the lowest in the region.
The proposed increase addresses the challenges facing the district, which has fixed operational costs while taking in decreased revenue due to successful water-conservation efforts.
Customers have exceeded conservation expectations by using 24 percent less water than in 2013, according to the district. That’s the good news.
The bad news? The lower demand meant that the Scotts Valley district saw revenues decline by $1.3 million over the past two years as water sales dropped. About 76 percent of the district’s revenue comes from selling water. Operating expenses, between $4-5 million annually, including energy and repair costs, have increased.
“We (district) have dipped into resources and been as frugal as we can be,” said Danny Reber, water board president, adding that water conservation is still the optimal way to preserve the precious resource. “If we didn’t raise rates people wouldn’t feel punished –but we would be in long-term trouble.”
The proposed rate increase, which has been discussed at several public meetings this year, would continue to have the greatest impact on heavy water users under the district’s continuing tiered water structure, which sets higher rates for each tier of higher consumption.
The current residential structure sets one rate for Tier 1, up to 6,000 gallons in two months. Tier 2 sets a higher rate for consumption of 6,001 to 14,000 gallons; Tier 3, 14,001 to 24,000 gallons.
The proposed new structure sets rate tiers at 0-6,000 gallons, 6,001 to 12,000 gallons, and 12,001 to 16,000 gallons.
Reber said budgeting funds to inject treated wastewater into the depleted aquifer is a major project under consideration. “We’ve got to fill our aquifer back up for future generations,” he said.
Water district customers can comment on the proposed rates at the next board meeting, 7 p.m., Thursday, Nov. 10, and at 6 p.m., Thursday, Dec. 8, which is the final hearing date when the board will consider adopting increases to its water and recycled water rate structures, water and recycled water rates, water and recycled fees and charges. Meetings are held in the Santa Margarita Community Room at the Scotts Valley Water District office, 2 Civic Center Drive.
Written Comments can also be made directly through email at the water district web site: http://www.svwd.org/ or delivered in person. For details of the proposed rate structure, go to www.svwd.org/customer-info/notice-proposed-water-rate increases.
