Water District to Consider Rate Increases

The Las Virgenes Municipal Water District on Thursday released a budget proposal that includes a number of service rate hikes as high as 10% to some customers to offset increased water costs from its supplier, district officials said.

The board of directors will meet Monday to consider the proposed rate hike and schedule public hearings before voting on it within the next 21 days, said Bobbe Wymer, a district spokeswoman. If approved, the rate increase would raise the district’s annual revenues about 7%, district officials said.

Under the proposal, rate hikes for new home connection fees, sanitation, meter, potable and reclaimed water are proposed to offset a 19% increase from the Metropolitan Water District, which will become effective July 1.

MWD provides the arid canyon district, which has one of the highest water-use rates in the state, with 100% of its water supply, said Michael Garrick, district director of finance and administration.

Local water customers use an average of 24 units of water per month compared with a statewide average of 10 to 15 units, he said. A unit of water is 748 gallons.

Unlike many local water districts who are balking at the rate increase from its regional suppliers, Las Virgenes officials are working to educate the public and gain acceptance for another year of water rate increases.

Last summer, the district passed on a 20% water rate increase to customers, who had a 10% increase in their bimonthly bills, Garrick said.

“We import 100% of our water, and if it weren’t for the MWD, we wouldn’t be here,” Garrick said. “We don’t want to lambaste MWD like some other districts trying to sell water at rates of 20 years ago . . . you just can’t do it.”

The average residential district customer who uses about 48 units of water every two months, will see about an $8 dollar increase in their bill during peak summer months, Garrick said. About 80% of the 14,000 households in the district use those amounts, he added.

Separately, sanitation fees would rise to offset an 18% increase in operating costs from the start-up of a new $50-million composting and sludge facility. The facility was constructed to enable the district to meet upgraded federal environmental regulations, Garrick said.

Meter reading services will also be increased, as well as the cost of reclaimed water, used for landscaping and some industrial uses.

Sewer connection fees--usually included in the developer’s selling price--will jump $1,750, under the proposal.

Even with approval of the increases, district officials say rates still fall below two-thirds of such comparably sized water districts in the area as Thousand Oaks, Oxnard and the Los Angeles City Department of Water and Power.