Big Valley MAC brace residents for potential water and sewer rate rise
KELSEYVILLE >> Despite a recent rise in water and sewer rates in the Big Valley area, residents absorbed another jolt that rates could rise again this fall, during a June 12 meeting of their Municipal Advisory Council meeting at the Kelseyville…
Scott Harter, Special Districts Administrator for Lake County informs councilmen for the Big Valley Advisory Council of the need to do a Prop. 218 procedure as he explained state requirements to raise fees without voter approval, at the Kelseyville Senior Center, June 12, 2024.
KELSEYVILLE >> Despite a recent rise in water and sewer rates in the Big Valley area, residents absorbed another jolt that rates could rise again this fall, during a June 12 meeting of their Municipal Advisory Council meeting at the Kelseyville Senior Center.
Fixed charges went up on Jan. 1, 2024, for six classes of customers, which increased by 3.7 percent. Residential building owners began paying $37.95 and for the same rate payers who may add an extra unit now pay $21.72. Out of district users pay $75.90. Meanwhile, motels pay $10.86 per room. RVs pay $7.23 per space. Fire Protection districts with a 4-inch pipe pay $33.26 and Fire Protection with an 8-inch pipe pay $66.60, according to Lechowicz-Tseng Municipal Consultants which was retained to perform the rate study and who informed attendees at the advisory council meeting held last week.
"Small rate increases over the past several years has not been enough," said Alison Lechowicz, project manager. "Despite inflationary increases, utility rates have fallen behind the cost of service." In a rate study conducted over several months the consultants found the operating fund will fall into a deficit. Other analysis by consultants cite capital reserves of $8,000.
Yet Lechowicz pointed out $8,000 is way short for anticipated improvements for the system. Also, rate increases are needed to rebuild prudent reserves, keep up with inflationary operating cost increases and fund system repairs. Rates will significantly increase this Fiscal Year of 24-25, 20 percent and the next, occurring on July 1, FY 25-26, for 15 percent. The remaining years of the 5-year plan calls for 3 percent increases also on July 1 for FY 26-27, FY 27-28 and FY-28-29. "The Proposed rate structure will better align with a fairer exchange than current practices she said. "Our recovery rate plan complies with all state regulations so, the first hike of rates for this proposal is in November, it provides for a lot of rate protection."
Other measures have been adopted to help rate payers. Scott Harter, Lake County Special Districts Administrator informed the Senior Center audience, "Anytime a rate increase is considered, we have to proceed through a Proposition 218 action," he said. Prop. 218 is a constitutional amendment that protects taxpayers by limiting the methods which can create or increase taxes without voter approval. Added Lechowicz, "There is a 45-day waiting period, a public hearing will be held, and rate payers have a right to oppose increased rates, she said. "If more than 50 percent of property owners protest, rates cannot be raised."
Sewer cost analysis by Lechowicz-Tseng for FY 23-24 estimated operating reserves of $84,000 as of July 1, 2023. But revenues of $467,000, which were supposed to cover operating costs but they amounted to $677,000 causing the operating fund to fall into a deficit. There are estimated capital reserves of $187,000 as of July 1, 2023. Yet as Lechowicz again pointed out, $124,000 is needed for capital improvements during FY23-24. A capital fund does have adequate reserves to cover projected upcoming projects. However, rate increases are still needed to fund operating expenses and accumulate operating reserves, while a capital improvement fee is proposed to be reduced.
In other business, Community Development Department Director Mireya Turner noted one change in the new fiscal year will be more robust community code compliance. "We got grant funding for half-time code enforcement officers and we'll focus on housing rehabilitation," she said. "And simultaneously, the administrative officer is looking for funding to help with housing rehabilitation." Turner also told the audience she would appreciate the MAC's continued participation in Lake County's 2050 Plan (updates of the General and Local Area Plans). She informed the audience the first series of workshops that produced the maps, re-drawn by residents participating in the first-round workshops will be archived in the county website, "It's a great way to become familiar with key issues that came up in each plan area," she added.
One good thing that is done by the MACs is if participants give the county their data, on a monthly basis the county will send them a spreadsheet of all the things on the local plan area projects so they get details about projects before final action is taken. The first project is a request for review, which is sent out to Stakeholder agencies: Water Resources, Public Works, Environmental Health, PG&E, Cal Fire, Caltrans, on what a particular project touches on. "People bring their concerns to the advisory boards about planning, code enforcement and development," she said. "And we (county administration office) appreciate that since it is a way, we can help out a lot more people."
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