Water districts raise rates as consumption declines
By Loretta Kalb, Sacramento Bee
It doesn’t seem fair – and to some it doesn’t make sense.
If you’re worried about water bills and you use less water, you should get a lower bill, right?
But that’s not happening in the Carmichael Water District.
The district has announced it wants to raise water rates 18 percent starting Jan. 1 – on top of an even bigger rate hike already imposed through mid-2014.
The reason: Water use in the district has fallen below historical average by an astonishing 25 percent, thanks to a mild and wet weather year, foreclosed homes and ratepayers using less water because of rising water bills.
With the cut in use, the water district’s revenue has dropped sharply.
It’s a curious turnabout in an industry long worried about having sufficient water supply for a growing population.
The state is requiring water suppliers to achieve a 20 percent reduction in urban per capita water use by 2020, a goal established in 2009 that has received plenty of public attention.
Not so well known outside water circles, however, is what it means for the finances of California’s water districts, which traditionally have high fixed costs.
“It really wasn’t until 2009 that we said, ‘OK, everybody is going to try to conserve,’ ” said Chris Brown, executive director of the California Urban Water Conservation Council, a group that includes about 130 of California’s largest water suppliers.
And again the consumer gets the shaft.
This “Catch 22” is effecting STPUD and will continue to create higher costs as population decreases in our area and our community conserves water. It is magnified by the Districts lack of accountability to it’s ratepayers and inability to keep its expenses in check.
The one certain way to minimize these rate increases is by increasing the efficiency of District operations. In other words “Trim the Fat” and make due with less. Something every other business and resident in our Community has been doing since the recession hit in late 2007 and STPUD is just now beginning to consider. Why the delay? Other sewer and water districts throughout the County, State, and Nation have taken steps years ago to protect the interests of their ratepayers by decreasing staffing levels, cutting expenditures, increasing operating efficiency and delaying capital improvement projects.
STPUD has existed in an ” Attitude of Entitlement”, it’s level of wages, medical benefits, and construction excesses, far exceed the levels of the Community and residents who “Own?” and pay it, justifying the expense as doing it in our behalf. STPUD’s average employee salary including benefits is $126,000.00 a year, of which #23,700.00 is for medical coverage. These levels far exceed the averages for wages and medical coverage in the City, County, State, and Nation.
Who has seen and not noticed the construction standards used and maintained in the District offices, often called the “Taj Mahal” which far outstrips the quality of City and County buildings. Also the monoliths built in our residential areas which surpass the construction quality of the homes that surround and pay the rates for them. The Districts engineering department has increased from 1 engineer and 1 inspector to 5 engineers, 3 inspectors, and 1 full time hydrologist, even while more and more of the District’s engineering projects are being sublet to firms such as Carollo, Brown and Caldwell, and many others. Other departments have also increased in staff while increasing the amount of internal work sublet to outside firms. This needs to be closely examined, while staffing cutbacks and adjustments to keep more work in house made. These practices of less work and more pay need to end. The District and Board of Directors needs to remember that they serve the Community and return to operating in a manner that serves you the ratepayer.
The District justifys the current levels of expenditure as planning for the future of our children, while continuing to examine more borrowing or rate increases to fund them in light of decreased revenues from property taxes, connection charges, and grant funding. This increased level of indebtedness serves neither you nor your children, it is what created the recession we now suffer in. As rates continue to climb, fewer and fewer of us will be able to live in our Community, let alone our children.
Vote carefully Tuesday, I am the one candidate who has:
Lived and operated a successful small business in our community for 40 years.
Been involved and fought for residents and our Community for 40 years.
Invested six plus years in learning the ins and outs of STPUD and how to protect and improve your services without raising rate.
Knows the time requirements of the job at hand and is ready to represent you from the moment I am sworn in.
I ask for your trust and vote Tuesday.
You got my vote John.
The reduction in individual water consumption will be totally negated by a proportional if not more increase in population. Less water more people, sounds like a great plan for the future of CA. Are we nuts or what? Watching CA rust out gives no joy to this native.
Well put John…Thanks!
I lived through a real drought in the Bay Area in the 70’s. The communities cut back water usage so much that the utility district had to double its consumption rates.
STPUD needs to cut back its admin and staff and take a serious look at its entire operation.
Thanks John, great evaluation of the problems at STPUD.
I hope you win. We need more people like you willing to go up against the powerful STPUD management and their two associates presently on the Board now.
Good luck John.
Thank you, Ernie