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Water Rate Hike Hearing Planned By Santa Clarita Water Division

A potential water rate hike prompted Santa Clarita Water Division officials to call for a public meeting Tuesday evening for its Budget and Rates Committee.


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The water rate hike is said to be over a three-year period, beginning January 1, 2018, which will be an initial 11 percent increase the first year, and 2 percent in the following years, according to a report released by Santa Clarita Water Division and the Castaic Lake Water Agency.

The report stated, for a customer with a three-quarter inch meter currently paying $39.67, the rate will go up to $44.37, making it an 11.8 percent increase the first year. The table estimated the same customer’s bill under the proposed rates will go up 2 percent in 2019 and 2020.

Santa Clarita Water Division officials say the water rate hike coincides with the agency’s normal three-year evaluation of cost.

“The drought is not driving the rate of service cost study,” said Keith Abercrombie, general manager of Santa Clarita Water Division. “The division did lose money because residents answered the call to conserve water. But we had reserves in place to cover the loss of revenue. We did not implement any type of surcharge to recover this loss — this is standard cycle of setting rates. Water agencies typically set rates using three- to five-years span to evaluate operation cost. We set rates back in 2013, ending in 2017. This is the normal time we start evaluating our cost for the future.”

The meeting is scheduled for Tuesday, September 19, at 5:30 p.m. in the training room at the Rio Vista Water Treatment Plant.

The notice of the public hearing will provide Santa Clarita Water Division customers information about the public hearing and proposed rates. Any record owner or tenant may submit a written protest and/or come to the hearing and provide oral testimony on the proposed rates. If a majority of the record owners or tenants directly liable for the payment of the charges submit written protests against the proposed adjustments, then the rate adjustments will not be adopted, according to officials.

Castaic Lake Water Agency hired a consultant group in 2015 to conduct a Retail Water Rate Cost of Service Study. The purpose of the study was to assist in rate analysis to establish updated water rates.

Related: Santa Clarita Valley Sanitation District Discusses Sewer Rate Increase

Raftelis Financial Consultants, Inc recently provided Santa Clarita Water Division officials with their report, summarizing findings and recommendations.

The major objectives of the study include the following:

  1. Develop financial plans for the Division to ensure financial sufficiency, meet operation and maintenance (O&M) costs, and ensure sufficient funding for capital replacement and refurbishment (R&R) needs over the five years.
  2. Perform cost-of-service analysis for the Division based on recent historical usage.
  3. Develop water rates in compliance with California Constitution article XIII D, section 6 (commonly referred to as Proposition 218).
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Water Rate Hike Hearing Planned By Santa Clarita Water Division

6 comments

  1. Aren’t they supposed to give more than a hour notice. This is illegal. We just had a take increase. You are all crooks. Need a complete audit of our water companies. Something isn’t right.

  2. Why is this story with meeting day and time on the same day? I really wanted to attend……… After all I’m paying a “Revenue Adjustment” now……. And the article says no increases for loss of income were claimed…..hmmmmm an out right alternative fact!

    Please share how I can attend meetings with advanced notice. Thank you.

  3. This was a Special Meeting of the Budget and Rates Committee only. This will go before the full board on September 27, 2017. The full board will approve this Proposition 218 Notice for a rate increase. A Proposition 218 rate increase requires a protest vote against to be mailed back to them before the public hearing. They are always short on details aren’t they.

    ATTEND THE SEPTEMBER 27,2017 FULL BOARD MEETING. THIS IS A RATE INCREASE TO RECOVER REVENEUE LOST WHEN RATEPAYERS CONSERVED WATER DURING THE DROUGHT. NOW THEY WANT YOU TO MAKE IT UP .

  4. This was a Special Meeting of the Budget and Rates Committee only. This will go before the full board on September 27,2017. The board will approve this Proposition 218 Notice for a rate increase. A Proposition 218 Notice rate increase requires a protest vote AGAINST to be mailed back to them before the public hearing. They are always short on details aren’t they.

    ATTEND THE SEPTEMBER 27,2017 BOARD MEETING . THIS IS IS A RATE INCREASE TO RECOVER REVENUE LOST WHEN RATEPAYERS CONSERVED WATER DURING THE DROUGHT. NOW THEY WANT YOU TO MAKE IT UP.

  5. Of course you didn’t add any ‘surcharge’, Mr Abercrombie. No, actually, our water rates went UP to make up for your ‘loss’ of revenue. And there were reserve funds to make up for the loss for revenue all along?? Something stinks here.

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