STPUD board leaning toward sewer rate hike this summer
By Kathryn Reed
Although a decision is not likely until mid-May, the South Tahoe Public Utility District board this month expressed a willingness to increase sewer rates by 3 percent starting July 1, with no change to water rates except for those on meters.
Board member Mary Lou Mosbacher missed last week’s budget and meter rate workshops.
A decision had to be made by the board last week regarding any potential rate increase so customers could be notified per state law. Any increase the board may institute cannot be higher than what is sent out on the notification. Public hearings will be conducted so people have ample opportunity to voice their opinions.
Paul Sciuto, assistant general manager at STPUD, talks about the proposed budget. Photo/Kathryn Reed
During the two-hour budget workshop last week, the staff report presented by Chief Financial Officer Paul Hughes and Assistant General Manager Paul Sciuto did not contain a rate hike. Hughes pointed out this did not necessarily reflect staff’s recommendation.
A concern he brought up that was later echoed by the majority of the board is without increasing sewer rates, the district would have to borrow money and therefore incur debt that in the long run could cost ratepayers more.
In the handouts were quarterly sewer and water rate comparisons to others in the Lake Tahoe Basin. They include:
2011-12 quarterly sewer rates —
• STPUD — $87.24
• Incline Village — $105.09
• North Tahoe — $133.68
• Kingsbury — $161.25
• Tahoe City — $163.89.
2011-12 quarterly water rates –
• Incline Village — $102.87
• STPUD — $119.89
• Tahoe City — $183.23
• Kingsbury — $195
• North Tahoe –$195.81
• Cave Rock — $607.38.
If STPUD raises sewer rates by 3 percent, it would increase the average residential customers’ bill by less than $1 a month.
The board members squabbled among themselves about whether it’s better to go with an increase now and pay as they go for things, or wait to hit ratepayers later, incur debt and perhaps let the infrastructure be taxed longer without repair.
Per their regular stances, board President Dale Rise is not a strong proponent of rate increases, while board member Jim Jones never believes what is agreed to is enough.
Jones was adamant he would not vote for a budget that does not include a rate increase.
“There is never a good year to raise rates,” Jones said. But he added he wouldn’t stand by and let the system disintegrate.
Sciuto told the board, “We are doing a good job of managing our assets, but there is risk. I like redundancy and we don’t have that.”
This was in regards to the Al Tahoe main as well as the lines services the North Upper Truckee area. If something happens to either one, he is worried it will cause problems throughout much of the system.
Board member Chris Cefalu, who will be one of the water meter customers to have uncertain future bills, said he is adamant about not raising water rates while the billing is in a state of flux.
The nearly 5,000 STPUD customers with meters represent about 34 percent of the ratepayers. The district per state law this year has to start charging them based on consumption. The goal is the rate structure will have the average consumer paying what flat rate customers pay.
However, those not using much water are likely to see rates decrease and those with lots of landscaping or families doing multiple loads of laundry a week could see the rates increase.
The budget contains no increases for salaries or benefits. However, the district’s CalPERS rate is increasing 2.43 percent. It will be shared equally between the district and employees.
Besides working on the next fiscal budget that begins July 1, the district is always working on a 10-year budget. The decline in assessed property valued for this fiscal year means a $7 million hit on the 10-year forecast for property taxes.
In the next fiscal year it is anticipated the district will use the remainder of the nearly $2.3 million in the MTBE account.
South Tahoe Public Utility District won a $69 million judgment (though about half of that went to attorneys and other expenses) when it successfully sued oil companies when it proved methyl tertiary butyl ether, a fuel additive, contaminated groundwater and posed problems for bodies of water like Lake Tahoe.
The money has been used to treat the 14 wells on the South Shore contaminated with MTBE.
Not until they cut salaries! STPUD needs to follow the lead of every other agency in town and reduce expenses. Just because they can raise rates doesn’t mean they should. STPUD has a moral obligation to cut expenses. Just think what it would be like if cities and counties could raise rates like utilities can. We have to stop these agencies from passing the buck to us. Cut your salaries by 3% and then you won’t need to take it from us. Why should we have to pay more when you could do what every one else has to do?
They need to raise the rates to pay for that fancy new castle office building and their gourmet coffee deliveries.
Rates will be raised guranteed, done deal allready. There was a study done where another water company went to meters and had to increase rates due to the lack of revenue generated. Rates MUST go up to maintain the status quo of payroll expenses and benefit packages. There will never be any reduction in salaries or benefits and our rates WILL go up. I got my eyes opened up as to who really runs the show down there when I ran for the Board and I can tell you it isn’t the Board. Rates WILL go up.
Cut salaries, increase employee contributions to insurance and retirement or risk a total lack of support from the community.
Won’t happen dry, it’s been tried before and everyone who has attempted to do so in the best interest of the community is instantly publicly and privatly persecuted, bad mouthed around town, hit with roadblocks and fought every step of the way by the union and management. STPUD is it’s own kingdom over there and nothing will change as long as we keep electing the same ole same ole. Btw, 68% of the workers there live in NV (got that # from mngmt) and still use the excuse of “giving to the community” I can’t really blame them for holding onto what they have, one of the best packages in the country, but to do nothing is sad. Also to compare their $$ to other areas is wrong also as most don’t live here so you can’t use a COLA for this area. What’s really sad is that I have known most of them for better than 25 years and rather than ask me a question they listen to the union rabble on what my stand is on all this. I am not against the union and have never been against the employees publicly or privatly. I just feel strongly about doing what is good for the community.
STPUD, WHAT PERCENT OF EVERY DOLLAR YOU RECEIVE GOES TO SALERY/BENEFITS? SLT JUST RECENTLY STATED THEIRS IS 78%. ALL OF YOUR EMPOLYESS RECEIVE 2.7 % & 55 YEARS RETIREMENT AND THE BEST INSURANCE PLAN IN THE STATE. ENOUGH IS ENOUGH!
Excellent letters from all. The district is the highest paid group in Tahoe, the wages should be posted so that you people could see the amount of salaries that are paid. It would Blow Your Minds, I don’t know about the last 5 years but the ripping off of the district buy the employees was unbelievable and that started at the top and worked all the way to the bottom. Hundreds of thousands of dollars That were taken and much of it went off the hill to the Valley. I feel very sorry for you people that are still there, until you change the entire board, there will never be change.
They should be at 2% at 55 and no more for there retirement pension, and for the work that they actually do they should receive a 15% decrease in pay.They spend more time getting out of work than just doing the job
Good Luck
Curtzwiler your not a board member because your a bum.
‘Curtzwiler your not a board member because your a bum.’
No, *you’re* a bum.
OK Skibum, who runs things? And how do we change things without waiting for another election? Stop paying our water and sewer bills?
I’ve often wondered, why do the same people keep running for the STPUD Board? How much are those Board members paid, what kind of perks do they get, how much do their benefits cost. There must be a reason they stay and keep making the decision to raise our rates, to pay their expenses. It would be nice to see the two members who have been there for a lifetime, go away and really retire. Appears at least one of them has never seen an increase he didn’t like.
The reason that no one spoke in opposition to the 3% rate increase was because STPUD Board President Dale Rise decided to concentrate on water meter rates, putting off discussing rising sewer rates until the last of the ratepayers wanting to speak in opposition had left after 9 pm. They had been waiting from 7 pm for their chance to speak.
This happens often in our community where meetings are called to discuss matters and the powers that be, outlast the opposition by agendizing or dragging out other issues until no time remains or the opposition has left due to health, family, or business constraints upon their time.
Everyone’s view deserves to be heard in a timely fashion. All Boards, Councils, etc. need to insure this practice does not continue.
It is not our representative government functioning at its best.
So how many put a stamp on a letter returned it to their office on rate increases? A stamp ,drop it in with the other bills you hate.
This whole town ,bi-ches about every thing that’s done after the fact.
Last time I think ,I was one of under a 100 people who wrote back asking for the rates to stay the same,really people, how lazy, out touch, are all you who want change, but do nothing?
I seen the same old stories in both papers for years,nothing changes,just more jerk council members you keep re-electing that do nothing more than show how out touch they are with the local community.
Your letters count as a voice,you don’t need to be there to be heard,I do think they should have to read every damn complaint out loud just to earn their keep.
I believe they (STPUD) will release the number of protest votes at the next Board meeting. So far I have heard that it is 4 or 5 times what was received last times. Clear Water is right! Send your protest letters in immediately!
Thanks 3%, must feel good that when you see me you have that smirk on your face thinking “He doesn’t know who this is” lol. Actually you are correct, I am a Bum but only in the winter. I don’t work and collect unemployment all winter and ski all over the country with my kids. Jealousy, envy or just plain stupidity on your part but you are correct. Thanks.