Editor’s note: The City of Sonoma recently released a report with its answers to the most frequently asked questions regarding proposed water rate hikes. Below is an edited and condensed summary of that report:
Why do water rates need to increase?
The water utility is self-funded meaning that it requires that revenues equal expenditures. The rate increase is necessary so the utility is financially sustainable and does not fall into deficit spending. The cost to supply the water, store it, and distribute it to the community continues to increase each year. There are also ongoing required maintenance and improvements of the water system to ensure stable and safe water to the community.
In addition, new State Water regulations for distribution system water quality require a higher level of investment in operations, equipment and facilities to change the way water flows through the system.
When was the last time water rates were increased?
In 2007, the City Council imposed a five-year schedule of increasing water rates. Since 2007, costs have risen significantly. The cost to purchase imported water from the Sonoma County Water Agency has risen approximately 60 percent in the last five years.
What will happen if we don’t raise the rates?
We will be forced to reduce our investment in necessary capital improvements in the distribution system and other areas. This will lead to increasing infrastructure failures, water service interruptions, water loss, street damage, and violation of State health and safety regulations.
What is the difference between fixed and usage rates?
The fixed service charge is based on the size of the meter at each location. Most homes have a 1” meter. The water use rate is for water actually used and recorded at the water meter.
The City of Sonoma is required for water conservation purposes, to have no more than 30 percent of water sales revenue be derived from fixed service charges.
Due to the decline in water use, the City’s current ratio of fixed to usage revenue has moved to about 19 percent fixed charges and 81 percent usage charges. The City Council directed a change in rates to achieve about 21 percent of revenue from the fixed service charges over a five-year period.
Is this rate increase going to pay for better utility services?
The rate increase is needed to maintain the current level of service for all City of Sonoma water customers and maintain reliable and safe water service to customers.
What is the “Base Charge” for water?
The base charge for water use is the total costs to be recovered by the water use rate divided by the total estimated annual water used in 1,000 gallon units.
What do water rates pay for?
Water rates are established to pay for ongoing operations, maintenance, repair and improvements of the existing system. Water rates also pay for staff salaries, operating materials and supplies, vehicles, training and projects included in the Capital Improvement Program (CIP).
Why doesn’t new development pay for capital improvements?
Connection fees are designed to ensure that development pays for costs associated with expansion and capacity related to growth as called for by the City’s General Plan. The new development pays all costs associated with infrastructure needed to provide water service. If growth stopped, ratepayers would need to cover some costs that are currently funded by connection fee revenue.
Why does the City need so many Capital Improvements and why does that affect our rates?
A reliable and safe water system is a valuable asset to the community and is an essential element to the quality of life in Sonoma. A balanced combination of planned long term financing with grants, connection fees and annual rate revenues is the best way to insure adequate funding for capital improvements. The $7.6 million capital improvement projects over the next five years are designed primarily to improve the water mains, service lines and establish new wells.
What do I have to do to protest the increase?
You need to send a signed written (not email) protest to the office of the City Clerk of the City of Sonoma by 6 p.m. on Monday, Nov. 17, 2014. Protests must be received (postmark not accepted) by the City Clerk before the close of the Public Hearing on Monday, Nov. 17, 2014. They can be mailed to the City Clerk or delivered in person at the Public Hearing.
You must include your name, the service address (or APN number) for your water account, and your original signature.
You must state your opposition to the proposed fee.
Only one protest per parcel or account is accepted by either the account holder or the property owner.
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