The San Lorenzo Valley Water District announced it is notifying customers of a proposed Drought Recovery and Water Capital Surcharge to make up a drought-caused revenue shortfall that impacts capital improvement projects already underway.
At its meeting on August 20, the SLVWD Board voted unanimously to proceed with the provisions of Proposition 218 to notify customers of the rate increase plan and hold a public hearing about the rate increase. The hearing is scheduled for November 19 at the SLVWD Board Room in Boulder Creek.
In 2013, the District completed a five-year-rate-study that projected yearly revenue for operational and capital costs for the years 2013-2017. From the year 2013 to the current time, California suffered severe drought and SLVWD customers responded positively to calls to cut back water usage by 25 percent. These drought conservation efforts had a negative effect on the District’s revenue.
In 2013, water revenue in the amount of $6.37 million was projected for the fiscal year 2016. In June 2015, the District approved a budget that projected only $5.6 million. The lost revenue impacts funding capital improvement projects already underway while maintaining reserve funds for emergencies. Current SLVWD capital improvement projects include Emergency Interties 2, 3, 4 and 6, as well as the Probation Tank, Swim Tank and Fall Creek Fish Ladder.
As a result, the District is considering implementing a Drought Recovery and Water Capital Surcharge of $1.00 per unit of water sold. The intent of the surcharge is to collect sufficient revenue to fund capital projects that the District has committed to complete. Tying the charge to consumption continues to encourage conservation.
“Our customers have done a fantastic job conserving water in response to the historic drought. An unintended consequence of conservation is the resulting loss of revenue for the District,” said Brian Lee, SLVWD General Manager. “The District receives revenue that is adequate to cover the cost of delivering water to our customers daily. However, because of the drought our projected revenues no longer cover costs associated with critically important capital projects that increase fire protection and disaster preparedness, as well as fix leaking tanks and sustain watershed health.”
Proposed Rate Increases
Each unit of water sold would be assessed a $1.00 surcharge. A unit of water is 748 gallons. An average household in San Lorenzo Valley Water District uses about 4 units of water per month. Therefore, an average household would see an additional charge of $4.00 on their monthly bill identified as the Drought Recovery and Water Capital Surcharge.
Proposition 218/Written Protests
If you have questions or comments about the proposed surcharge or wish to protest, you may:
- Address The Board: Call the District: 430-4625
- Attend the Public Hearing on November 19, 2015.
- Write to the attention of the Board of Directors: San Lorenzo Valley Water District, 13060 Hwy. 9, Boulder Creek, CA95006
- By law, protests against the Drought Recovery and Water Capital Surcharge proposal must: Be submitted in writing, identify the property by street address or Santa Cruz County Assessor’s Parcel Number;
- Include the signature of at least one of the property owners (or tenants who are responsible for paying the monthly water bill); and,
- Be submitted to the District (by mail or hand delivery) prior to the close of the protest hearing.
A sample protest letter is available on the homepage of the District’s website.
If written protests against the proposed surcharge are filed at or prior to the end of the protest hearing by a majority of the affected property owners, the District Board will not approve the surcharge. Protests received after the hearing closes will not be considered, including protests postmarked prior to the hearing date but not received in the mail by the date of the protest hearing. Any protest submitted by email or other electronic means will not be accepted. Only one written protest per parcel will be counted for purposes of determining if there is a majority protest.
