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HomeMy WebLinkAbout06-16-2015 PH1 Lopes 1JUN 16 2015 ,v June 16, 2015 COUNCIL MEETING:___ OL ITEM NO.: PA U San Luis Obispo, California 93401 RE: June 16, 2015 Agenda item PH1 -D — Water Rate Increase Dear Mayor Marx and Council members: The first sentence of the staff report's Background section identifies the fundamental problem: The huge expenses of the Nacimiento Water Project and other major infrastructure are paid for by water usage rate fees. These huge expenses should be assigned to the City General Fund, to be paid by tax revenues which are more stable than a usage fee. A Proposition 218 election should be scheduled to do so. During the last major cycle of rate increases in 2013, the May 22, 2013 edition of The Tribune identified the cumulative rate increases to pay essentially for the Nacimiento Water Project. Between 2005 and 2013, rate increases totaling 95 ep rcent basically doubled the water bills of San Luis Obispo residents. City staff at that time complained that residents had responded by reducing their water usage, and revenues were down and flat. Staff responded by proposing rate increases to counteract this decline in water usage and fee income: Between 2013 and today, these increases were to total 16.5 percent. If residents would only maintain their water usage, then these increases would generate enough revenue to pay for the Nacimiento Water Project and other system expenses. Recently, The Tribune, not City staff, mentioned that the State - required reduction in water usage is only 8 percent for San Luis Obispo. This small amount is due to the previous attempts at reducing water usage to keep water bills affordable. These reductions were not primarily due to altruism in our happy city, but they were simply checkbook economics, residents trying to fend off these ever - increasing fees. Since the June 16, 2013 staff report (page 2) is silent on what the Governor's order (the 8 percent) actually entails for San Luis Obispo, it appears to be a scare ploy to divert attention from the real reason for the proposed rate increase: to keep revenues way up to pay for Nacimiento as well as some major system improvements. I am requesting that your Council take some measure of control of this shell game, and continue this hearing with direction for staff to fully identify the methods of funding that can remove the Nacimiento Water Project (bonds), and other large system improvements, from the rate - paying system and put them into the tax collection system (Measure G ?). Only if this is done will the City have the ability to ask people to conserve for drought relief with open hands. And, if you do not take this measure, people will just continue to conserve to save money from these rate increases, which will keep you and all of us on a merry-go -round of rate hikes and conservation. As you consider this request, just think of the huge amount of extra water that exists in the City's Nacimiento supply, beyond build -out of the General Plan, which City staff have not told you about. There is no dire imminent shortage of water for which we all must conserve, as if we were in Palm Springs. It is just another piece of data that works against the attempts by staff to raise water rates to pay for all that extra water and the diminishing amounts we are using. Sincerely, mes Lopes 2 Lomeli, Monique Subject: From: James Lopes Sent: 6/16/2015 1:33 PM To: E -mail Council Website FW: June 16, 2015 Water Rate Adoption Subject: June 16, 2015 Water Rate Adoption June 16, 2015 Dear Mayor Marx and Council Members: COUNCIL MEETING: IEM NO : j SUN 16 (�, The first sentence of the staff report's Background section identifies the fundamental problem: The huge expenses of the Nacimiento Water Project and other major infrastructure are paid for by water usage rate fees. These huge expenses should be assigned to the City General Fund, to be paid by tax revenues which are more stable than a usage fee. A Proposition 218 election should be scheduled to do so. During the last major cycle of rate increases in 2013, the May 22, 2013 edition of The Tribune identified the cumulative rate increases to pay essentially for the Nacimiento Water Project. Between 2005 and 2013, rate increases totaling 95 percent basically doubled the water bills of San Luis Obispo residents. City staff at that time complained that residents had responded by reducing their water usage, and revenues were down and flat. Rate increases were proposed to counteract this decline in water usage and fee income: Between 2013 and today, these increases were to total 16.5 percent. If residents would only maintain their water usage, then these increases would generate enough revenue to pay for the Nacimiento Water Project and other system expenses. Recently, The Tribune, not City staff, mentioned that the State - required reduction in water usage is only 8 percent for San Luis Obispo. This small amount is due to the previous attempts at reducing water usage to keep water bills affordable. These reductions were not primarily due to altruism in our happy city, but they were simply checkbook economics, residents trying to fend off these ever - increasing fees. Since the June 16, 2013 staff report (page 2) is silent on what the Governor's order (the 8 percent) actually entails for San Luis Obispo, it appears to be a scare ploy to divert attention from the real reason for the proposed rate increase: to keep revenues way up to pay for Nacimiento as well as some major system improvements. I am requesting that your Council take some measure of control of this shell game, and continue this hearing with direction for staff to fully identify the funding that can remove the Nacimiento Water Project (bonds), and other large system improvements, from the rate - paying system and put them into the tax collection system. Only if this is done will the City have the ability to ask people to conserve for drought relief with open hands. And, if you do not take this measure, people will just continue to conserve to save money from these rate increases, which will keep you and all of us on a merry -go -round of rate hikes and conservation. As you consider this request, just think of the huge amount of extra water that exists in the City's Nacimiento supply, beyond build -out of the General Plan, which City staff have not told you about. There is no dire imminent shortage of water for which we all must conserve, as if we were in Palm Springs. It is just another piece of data that works against the attempts by staff to raise water rates to pay for all that extra water and the diminishing amounts we are using. Regards, James Lopes San Luis Obispo, CA 93401