What the City Didn't Tell You About the Water Rate Increase
WHAT THE CITY NOTICE DIDN'T TELL YOU ABOUT THE WATER RATE INCREASE1
Fact: The Tale of Two Cities. On February 26th, the City will consider TWO distinct rate increases for water customers. One is a flat 6.5% increase. The other is a more complicated "Cost of Service" rate plan that is full of mischief. The City will likely choose the "Cost of Service" plan, but only told customers about the flat rate increase plan.
Fact: If 50% + 1 of customers protest, then it's a no-go. The notice doesn't disclose the legal finding by the City Attorney that if 50% of customers send in a written protest (hidden in the notice - bottom of Page 2) that the City is legally prohibited from increasing water or sewer rates.
Fact: It's a bailout for businesses. Under the Cost of Service proposal, a Single Family ratepayer class will pay -- on average -- 12.12% more in July 2007 while the Commercial Ratepayer class will only pay 1.39% more.
Fact: Biggest increase for families. The average Single Family ratepayer (13 HCF monthly use) will see an 11.7% increase in the water portion of their July 2007 water of bill.
Fact: Discourages conservation. The Cost of Service proposal hits modest and average residential users harder than residential water hogs who use more than 20 HCF.
Fact: There's yet another increase in the works for 2007. "The Water Department Intends to come back to council in the Fall of 2007 to request authorization to notice any future pass through, and increase rates accordingly, that are identifiable at that time." Page 15-Dec.18, 2006 REPORT TO THE CITY COUNCIL.
Fact: It doesn't include salaries and wages. It assumes that City worker salaries and wages are increased by 4% in FY08 but are not increased thereafter until FY13." Five years without a pay hike? Not likely.
Cost of Service Rate Revenue for 2007-2008
| Customer Class |
2007 Existing Revenue |
2008 Proposed Revenue |
2008 Proposed Revenue Increase |
| Single Family Resident |
$113,282,900 | $127,019,500 | 12.12% |
| Other Domestics/ Multi-Family Residential |
$58,738,500 | $60,439,800 | 2.90% |
| Commercial | $58,176,400 | $58,987,600 | 1.39% |
| Industrial | $3,855,300 | $4,010,400 | 4.02% |
| Temp. Construction |
$2,120,800 | $1,482,600 | (30.09%)* |
| Irrigation | $33,012,300 | $35,123,400 | 6.39% |
Cost of Service Rate Revenue Projected for 2011
| Customer Class | 2011 Projected Revenue | 2008-2011 Projected Revenue Increase |
| Single Family Resident | $153,433,200 | 35.52% |
| Other Domestics/ Multi-Family Residential |
$73,008,200 | 24.29% |
| Commercial | $71,254,100 | 22.48% |
| Industrial | $4,844,400 | 25.66% |
| Temp. Construction | $1,790,900 | (15.55%)* |
| Irrigation | $42,427,300 | 28.52% |
( )* denotes a decrease
Single Family Resident Rate Comparison by Usage
| Monthly Usage (in HCF) |
2007 Existing Rate |
2008 Proposed Rate |
2008 Rate Increase |
| 1 | 17.60 | 17.44 | (0.9%)* |
| 2 | 19.33 | 19.70 | 1.9% |
| 3 | 21.06 | 21.97 | 4.3% |
| 4 | 22.79 | 24.23 | 6.3% |
| 5 | 24.53 | 26.49 | 8.0% |
| 6 | 26.26 | 28.75 | 9.5% |
| 7 | 27.99 | 31.01 | 10.8% |
| 8 | 30.15 | 33.48 | 11.0% |
| 9 | 32.31 | 35.94 | 11.2% |
| 10 | 34.48 | 38.40 | 11.4% |
| 11 | 36.64 | 40.86 | 11.5% |
| 12 | 38.80 | 43.32 | 11.6% |
| 13 | 40.97 | 45.78 | 11.7% |
| 14 | 43.13 | 48.24 | 11.8% |
| 15 | 45.50 | 51.02 | 12.1% |
| 20 | 57.36 | 64.89 | 13.1% |
| 25 | 69.22 | 78.77 | 13.8% |
| 30 | 81.08 | 92.64 | 14.3% |
| 35 | 92.94 | 106.52 | 14.6% |
| 40 | 104.80 | 120.39 | 14.9% |
| 50 | 128.52 | 148.14 | 15.3% |
| 60 | 152.24 | 175.89 | 15.5% |
| 80 | 199.68 | 231.39 | 15.9% |
( )* denotes a decrease
Water: Water and Sewer Rates -
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