City to seek wastewater fee increase

At its Oct. 19 meeting, the Scotts Valley City Council voted unanimously to move forward in seeking a rate increase on wastewater services for the city for the first time since 1995.
Wastewater budget has operated with a growing deficit for the past three fiscal years, most recently a $193,000 deficit for the current fiscal year.
The deficits have come mostly due to the economic downturn affecting revenues rather than increased expenses, said City Manager Steve Ando.
According to rules set down by Proposition 218, homeowners – whose property tax covers 93 percent of wastewater funds — would be notified of a planned increase by mail and given the opportunity to attend a public hearing.
Currently, the discussion is to raise rates 13 percent, or 4 percent annually for 4 years, meaning that eventually a single family home would pay $29.42 per month, up from the current $25.15 per month. This would not take effect until the next fiscal year, which starts in July 2012.
That estimated increase would still be less than the monthly cost for wastewater in the city of Santa Cruz, which is some $38 per month, and the Live Oak area, in which residents pay nearly $55 per month.