Guest opinion

Water rates reflect higher wholesale costs


The Acorn
acknowledged the reduction of imported water supplies and raised questions about water rates and policies. The public deserves a response.

It’s no secret that Southern California is in the third year of very dry conditions that have increased demands for imported water. Federal court rulings have imposed new water supply constraints to protect the environment and comply with the Endangered Species Act. Protection for the Chinook salmon and delta smelt is an issue that a majority of the public in California has said is important to them.

The costs associated with these protections are a double whammy in tough economic times. Replacement supplies, when and if available, are substantially more expensive. Unless there’s a drastic change in rainfall and
statewide water policy, water agencies are preparing for yet another year of tighter, more expensive supplies.

The largest district expense is for the acquisition of water from the Metropolitan Water District of Southern California, up 42 percent in the last six years, and projected to increase another 20 percent next year. There are no local sources of potable ground water, typically the lowest-cost source of supply for many water districts, which can be used to offset more costly imported water. The next largest expense is for electricity to move the water, which has also increased over 40 percent since 2005.

This year, LVMWD has a deficit of $5.9 million, rising from an expected reduction in water sales due to water allocations and a planned spend-down of reserves. The district is not planning to pass along the deficits during these difficult economic times. Other costcontainment measures include the cancellation of a scheduled rate increase for sanitation which was not needed because other cost-containment measures were successfully implemented, and management compensation has been reduced. And in response to The
Acorn’s
question, LVMWD does not control unneeded real estate that could be sold to generate onetime revenue.

A recent survey of area water agencies shows that LVMWD’s rate structure is among the lowest in the region. Unfortunately, many customers have just received their highest bills of the year for service during the hottest weather months, causing some to think water costs have increased significantly. Additionally, the recently implemented conservation-driven budget program has also increased costs for some customers who were billed penalties for water use over their budgeted amount.

Our readers and our customers should be aware that if they remain within their allocation, they will pay the normal rates and charges in effect. The district’s allocation program was purposely designed to assure that customers who conserve are not penalized for their success. Any penalty revenue collected is not a windfall for LVMWD, as it will be used to pay the over-budget penalties applied to our district by Metropolitan.

The harsh reality is, as a group, LVMWD customers are using more water than has been allocated by Metropolitan. Last week, the district received a letter saying overall water use by LVMWD customers is 11 percent above the allocation since July 1, potentially obligating the district to pay millions in avoidable penalties.

LVMWD is a public municipal water and sanitation service agency with a commitment of transparency to its customers. The distinct does not profit from its fees and charges, as all revenue collected is used to benefit of the customer. From top to bottom, LVMWD is committed to providing these valuable health and safety services at the lowest possible cost.

The Las Virgenes board meets on the second and fourth Tuesday of each month at 5 p.m. and the public is welcomed to attend. Agendas are available on the district’s website and at the headquarters facility.


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