Novato Water Rates Proposed to Jump 33 Percent Over 3 Years
North Marin Water District cites rising costs, capital projects and lower water sales as reasons for needed rate hikes. The board vote is set for May 24.
Five weeks after it sent a letter to Novato customers about proposed rate increases, the North Marin Water District board is publicly hashing out details of the proposed boost that averages 11 percent for three consecutive years.
The NMWD board, which meets at 7:30 p.m. Tuesday night (agenda attached), is one week away from voting on the increases. The district has cited higher water costs from Sonoma County sources, reduced water sales, declining financial reserves and an aqueduct improvement project north of Novato as the reasons behind the proposed hikes.
The typical single-family home would see its water bill increase by $5 in the first year, $5.20 in the second year and $5.80 in the third year, according to NMWD. By June 2013, the increases would add up to $162 more on an annual bill.
District General Manager Chris DeGabriele said 67 letters of protest about the increases had been delivered as of Friday.
“Nobody has a desire to raise the rates, but we feel we have to. It’s the position we’re in,” DeGabriele said. “It’s not just going on here; it’s happening throughout California. We would like to see some warm weather so folks would use some more water.”
He said an 11 percent sounds like a lot, “but if you’re a conservative user of water, it’s not going to break the bank. At the same time, we need to have a reliable source of revenue to provide our service to the customers.”
In the April 8 letter to customers (see atached), NMWD said its rates remain reasonable and that the typical bill is below the median of similar water agencies. A comparison charge is available at www.nmwd.com.
Eighty percent of Novato’s water supply comes from Sonoma County sources and it is delivered through the North Marin Aqueduct that runs parallel to Highway 101. Caltrans has embarked on a highway widening project, and the parallel aqueduct is being enlarged between Kastania Road to the Redwood Landfill. NMWD’s obligation is about $8 million, and construction is expected to start about a year from now.
NMWD has plans to get Russian River water delivered to Novato without pumping, eliminating the Kastania Pump Station near the Marin-Sonoma county line just south of Petaluma.
The water district plans to borrow the $8 million to finance the project, causing NWMD’s first bond debt since 1986. Before the financing is sought, the district says it needs to convince rating agencies that it has the ability to pay back the loans, and enacting the increases before going to market will boost its credit rating and reduce overall costs.
The district’s finance officer, David Bentley, has told the water board that financial reserves total 44 percent of operating expenses, less than half of what he recommends. The district expects to have a deficit of $700,00 at the end of this fiscal year, and the proposed operations budget for 2011-12 projects a net bottom line deficit of $269,000, Bentley said at a recent meeting.
The district points to personnel reductions and a slowing of internally funded capital projects whenever it is accused of irresponsible spending. The workforce has been cut by 10 percent (five positions) in the past two years and money for new projects has been trimmed by 25 percent. This summer, half of its water conservation rebate budget will get the ax.
“We have a long-range master plan that looks at projects that need to be implemented,” DeGabriele said, “and those projects are being pushed out to reduce costs.”
To learn what the increases would mean to you, click here.
Lloyd
2:14 pm on Monday, May 16, 2011
I believe the NMWD does an excellent job of providing water to our community. However during these very difficult economic times rate increases of 11% per year for the next three years actually come to nearly a 37% increase to current rates. I for one am not educated enough to make an informed decision regarding the need for a $8 Million Bond proposal. I believe a much broader based public information period followed by a simple ballot measure would be more appropriate in this case and could be voted upon by this fall. The NMWD has said that if the majority of customers/voters opts against this increase, in other words, majority rules, they would not impose the rate increase. Allowing it to slide past by hoping the public doesn't notice seems a little less then an honest polling of the public intentions.
John Wyek
3:46 pm on Monday, May 16, 2011
I find it interesting that the NMWD cites lower water use as a reason they need to raise rates, and yet they are only cutting their water conservation rebate budget by 50% this summer! I am all for conservation, but suggest they eliminate the rebates completely.
How fair is it that they are giving away money to save water, and then get to charge us more for doing so? I say let people conserve on their own, and don;t raise my rate so that you can give a discount for someone who hasn't yet bought their low flow toilets and faucets.
Lloyd
4:06 pm on Monday, May 16, 2011
So NMWD that is two more NO votes to a rate increase. If you want your vote to count email the district @ info@nmwd.com which is the only email address I could find. You can also write the district at
North Marin Water District
999 Rush Creek Place
Novato, CA 94945
Speak up now or don't complain later...
Darlene Betette
5:09 pm on Monday, May 16, 2011
These rate hikes are unacceptable. Water charges are astronomically high as it is! I have never had a comfortable feeling that the NMWD is an honest business to start with. It seems to me that whenever they have legal bills to pay, our water rates are hiked up. We are still in a recession and this is NOT the right time to be increasing rates. Defer the capital projects until we have a better economy. Curtail the current employee hours if you need to cut back expenses. WE ARE ALREADY PAYING TOO MUCH MONEY FOR WATER WHICH IS A NATURAL RESOURCE. THERE IS SOMETHING FISHY GOING ON HERE. I VOTE NO!
Maggie
8:07 am on Tuesday, May 17, 2011
Water rates are lowest utility we pay, yet water is the most precious resource on our planet! I have no problem with rate increases because we don't pay enough as it is. I say this as someone who doesn't have a high income and is dealing with pay cuts at my job. I feel that rates though should be more tiered and that people living in BIG houses using a lot of water should pay a lot MORE than I do, also people with swimming pools and spas, (non-necessities!) as should commercial entities. I work hard to conserve water and I'm not convinced everyone else does. I see too many sprinklers running during the day and in such a way that they waste water. If it hurts to pay more for water maybe maybe more people will start conserving. This is a global issue and many corporations are trying to privatize water, which will result in the poorest people on the planet not having access to safe water. We need to conserve for the greater good of the world, not just to keep our bills low.
Nick Kies
8:11 am on Tuesday, May 17, 2011
We have had water rationing here in the last three years. It will happen again, the weather pattern that created the shortage is not that unusual. Yet, the city goes on issuing building permits and the water bureau's policy is try to provide it. Bottom line is your water is being given away and there isn't plan to deal with it. You think the wonderful Novato Water Distict and seperate entity the City of Novato is going to save you money down the line with this kind of forsight, rigggghhhhht. Years ago mom summed it up, small towns small minds!