Water, sewer rate increases proposed in Poway
Poway’s successful campaign to get residents to reduce water consumption is threatening the budget used to provide service and keep the city’s aging distribution system going.
On Tuesday night, the City Council will begin discussing a staff report that recommends both increases in water and sewer rates and the implementation of a special “drought recovery surcharge” that would last 2 1/2 years and would be used to repay a $5.7 million loan from the sewer fund that would keep the water fund from running dry.
Tuesday night’s discussion, which will begin at 7 p.m. will be in a “workshop” format, meaning no formal votes will be taken. A public hearing on any rate changes would take place on Dec. 15. Any changes in rates would take place Jan. 1 and would be reflected on the March 2016 bimonthly billings to customers.
Staff is recommending that the water commodity rate be increased by 7.75 percent and the fixed water meter charge by 8.75 percent. The sewer use rate would go up by 7.5 percent while the fixed sewer charge would go up by 8.75 percent.
The new drought surcharge would be 75 cents per unit of water (748 gallons). It would last until December 2018.
The proposed rates, including the surcharge, would increase the bill for a typical single-family residential customer by $14.66 a month or $29.32 per two-month billing cycle.
As a result of declines in monthly water consumption that are in response to state-mandated cutbacks, typical single-family water usage in 2015-16 are expected to drop to as low as 20 units, the report says. By comparison, usage averaged 36 units in 2007-08 and 25 units in 2014-15.
The staff report, prepared by Acting Administrative Services Director Peter Moote, predicts that without the rate increase and addition of the surcharge, the city’s water fund will show a $680,000 deficit balance by June 30 of next year. The budget for this current fiscal year is about $22 million. About 61 percent goes to purchasing water from the San Diego County Water Authority, which is raising its prices. The balance of the budget is used for cost of water treatment, operations, maintenance and administration.
Fixed costs to operate and maintain the city’s water system remain the same regardless of water sales, Moote noted. Since residents are using less water during the drought, about $3.8 million in revenue is being lost.
By contrast, the city’s sewer fund is in good shape. Moote’s report suggests that the city take $5.725 million for that fund and transfer it as a 2 1/2 year loan to the water fund to get the city through the ongoing statewide drought.
In another matter, the council will consider a proposal to spend about $21,000 on a off-leash dog pen at Silverset Park. The subject of dogs at the park has been ongoing for several years.
