Water rate hike on the horizon in SLV

The San Lorenzo Valley Water District faces a dilemma.
For the past several years, the district has promoted water conservation through rebates and education in an effort to use less water — a finite and valuable resource in California.
Valley residents responded by cutting back their water use. Combined with a cool summer in 2010, though, that means the district has sold less water, even while its costs to provide water have remained the same or are on the rise.
“The district has promoted conservation,” Betsy Herbert, district environmental analyst, said. “Like all districts, we want people to save water. At the same time, we depend on water sales.”
“It’s a double-edged sword,” board president Terry Vierra agreed. “When you start using less water, it starts costing more money. The same system, same personnel and same costs are there regardless of how much water is pumped.”
Vierra said the district has long-term, ongoing needs related to its pipes, pumps and water tanks that are not factored into its budget. He said the board’s intention is to launch an educational campaign to inform customers about what it takes to run the district.
According to the district’s financial statements, about 80 percent of its revenue — an estimated $4.3 million this fiscal year — comes from the sale of water. Other major sources of income are property taxes (about $460,000) and annual interest from the sale of the Waterman gap property (about $300,000) this year.
However, water sales have decreased in the past several years, and operating costs exceeded revenue by about $600,000 from the beginning of 2009 through the end of 2010, district general manager Jim Mueller said.
Less water flowing from its 7,300 connections and operating costs that are fixed or increasing have the district’s board of directors set to ask customers for a rate increase.
“The board and district didn’t undertake this process lightly,” Mueller said. “We had it in committee for a period of four or five months and then made a recommendation to the full board. The board then directed staff to move forward with the process.”
In 2009, the district asked directors for a three-phased increase of 30 percent that would have raised rates to sustainable levels. Instead, directors approved an increase of 20 percent in two phases after a flood of public input during the depths of the recession.
This time, the district is asking for a one-time increase that would amount to $13.67 every two months — roughly a 15 percent increase for the average customer.
SLV Water District is made up largely of residential customers, Mueller said. Seventy percent of customers use 18 consumptive units, and the average bill is $91.48 every second month. For that same average customer, the new bill would be $105.15.
The district will mail information about the proposed rate increase and how to protest the hike to every water user in the district by April 1. A public hearing will begin at 7:30 p.m. May 19 at Highlands Park Senior Center, 8500 Highway 9, in Ben Lomond.
For information: www.slvwd.com.
Water sales in units (1 unit is 748 gallons)
2008-2009 — 815,322 units
2009-2010 — 787,541 units
2010-2011 (projected) — 761,108 units