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Yes on U for equitable water rates
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Here’s a statement of reasons for the measure
We propose to align San Lorenzo Valley Water District’s rate structure with its Mission Statement for equitable rates. The District’s sharply rising Service Charge and proliferation of additional fixed charges has shifted the primary cost burden onto low water users. The proposed Ordinance will limit how much the Service Charge can increase each year.
Here’s the measure text:
Whereas the District is committed to equitable rates in its Mission Statement; and
Whereas the sharply rising Service Charge and proliferation of additional fixed charges has shifted the primary cost burden onto low water users; and
Whereas having a lower Service Charge supports affordable rates for low-income households; and
Whereas the District had other options for people to pay their fair share with a lower Service Charge; and
Whereas the District abandoned the goal of water conservation by reducing volume charges for most customers which tilted the rate structure towards fixed charges; and
Whereas a rate structure limiting fixed charges is a step towards affordability and equity;
Therefore, the people of the San Lorenzo Valley Water District do ordain as follows:
1. Title. This shall be known as the "Fixed Charge Limitation Ordinance".
2. Definition. "Fixed charge" as used in this ordinance means any continuous, periodic charge not based on volume of water consumed.
3. Effective date. This ordinance shall go into effect 10 days after the date the vote is declared.
4. Repeal of fixed charges. All fixed charges are hereby repealed except the regular Service Charge (also known as the Base Charge, Basic Charge, or Ready-to-Serve Charge) and the Private Fire Service Charge.
5. Limitation of fixed charge. The regular Service Charge shall be limited to a 2% increase each calendar year.
6. Termination date. This ordinance shall terminate on January 1, 2049.
7. Severability. If any portions of this ordinance are deemed to be inconsistent with law by a court of competent jurisdiction, the remainder shall remain fully in effect.
Passed and adopted by a majority vote of the electorate of the San Lorenzo Valley Water District.
We propose to align San Lorenzo Valley Water District’s rate structure with its Mission Statement for equitable rates. The District’s sharply rising Service Charge and proliferation of additional fixed charges has shifted the primary cost burden onto low water users. The proposed Ordinance will limit how much the Service Charge can increase each year.
Our Initiative Measure in condensed bullet points
· Equitable rates
· Shifting of the cost burden to low water users
· Affordable rates for low water users and low income.
· Fair Share options were available
· Water Conservation is not supported
· A step towards equitable and affordable rates
Drilling down: show and links
Equitable Rates
The water district is committed to equitable rates in its Mission Statement
Rate study consultant Raftellis provided 6 options showing variance of impacts
Shifting of Burden to low water users
Raftellis slide saying the option chosen has a greater impact on low water users
Graph of different classes of water users, showing most use 4 units or less
Comparison with District’s info in 218 and press releases
Affordable Rates for low water users and low income
Demographics on seniors, 1-2 person households; testimony at the Public Hearing in February
Fair Share Options
Raftellis rate study report of 6 options showed better distribution of increases per class in some
Testimony from the community that a fair distribution is more important than the increase itself
Water Conservation
These are not conservation rates
The district abandoned the goal of water conservation by reducing volume charges
People conserved on water when the district asked and many now feel punished for it
A step towards equitable, affordable rates
The community understands the district must have water rate increases, but they must be fair to all
A community is judged by the way they treat their most vulnerable
An opportunity to go back and do this right, re: claim they didn’t have all the info to consider
June 19, 2024 slvpost.comWater Rates
By Bob Fultz
I’d like to talk about a recent Facebook post by the San Lorenzo Valley Water District. I’m a member of the SLVWD Board of Directors but am speaking only for myself.
I’ve advocated for years that the District needs to communicate its true financial position as part of an overall communications plan. Recently, the District published a financial chart on Facebook, which you can see directly below:
The pie chart in the District’s post (and above) makes it appear that a majority of the money you pay in water rates is spent on infrastructure. Unfortunately, this pie chart appears to combine revenue from water sales with large loans the District has rightly taken out to fund infrastructure—which is not standard accounting practice nor helpful for this analysis. It is like saying that your paycheck and credit card debt are both income. We all know that credit cards and loans are repaid from income, so the District’s pie chart data is not accurate. But the idea of knowing where your rates go is valuable.
An accurate picture is posted below. For the budget year June 2024 through July 2025, 11% of the money you pay to the District is used for capital obligations, like repaying the loans that fund infrastructure improvements. An overwhelming majority of your water rates is spent on operations. This 11% is less than half of what it needs to be to keep our District’s infrastructure up-to-date.
This next pie chart shows how budgets for the District since 2016 have grown at about twice the rate of inflation, while rates more than doubled. You may remember, as I do, that the District said most of the money from the last two rate increases would pay for infrastructure. Unfortunately, that did not happen. Instead, about 2/3 of the last two rate increases were used for general operations.
It’s not clear that the most recent rate increase will be any different as the District and your Board of Directors have not made any progress to change their spending patterns. That history shows us it is important that we make wise choices going forward, to help us get our District on the right track serving you with better financial oversight and fair rates. Thank you.
Bob Fultz is a member of the San Lorenzo Valley Water District Board of Directors. He is a resident of Boulder Creek and CEO at Range Networks.
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· Hi everyone, I'm one of the SLVWD Directors. I oppose the proposed rate increase. If you would like to learn more about why you should oppose the rate increase by submitting a protest ballot by Feb 15th, please attend a Zoom meeting I'm hosting on Feb 5th at 7PM. Email me at bobfultz.slvwd@pacbell.net to receive the invitation details. Additional dates will be announced soon.
As a preview, I've attached a chart that provides you with critical information that should have been provided in the District mailer.
Facts:
• The SLVWD Board has not promised how the money will be spent. But, only 33% of the last two rate increases went towards infrastructure.
• Low usage customers face the highest percentage over 5 years: 81% for 1 unit, 62% for 2 unit, 50% for 3 unit bills.
• Low usage customers will also provide the majority (54%) of the incremental revenue generated by this proposal. This is not fair.
• The District Mailer implication that 6 units is average or typical is misleading. 59% of all bills in 2023 were 4 units or less. Only 7% of all bills in 2023 were 6 units--this is the OPPOSITE of typical.
We propose to align San Lorenzo Valley Water District 's rate structure with its Mission Statement for equitable rates. The district's sharply rising Service Charge and proliferation of additional fixed charges has shifted the primary cost burden onto low water users.
An Equitable Rate Structure
Our community responded in support of the water district when asked to reduce water use, and our rate structure should in turn support those who conserve to save, but does not. Together, we can make a difference in our community for equitable rates for all.
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