By David Buckingham
As we stated in this space in the Jan. 22 edition of The Bay News, “We must raise water rates or risk losing our state water supply.” In asking for your input on this discussion, we also noted that sewer rates must increase as well.
We recently concluded a professional water rate study, and while rates must not increase quite as badly as we feared they might have to, the planned hikes are still very significant.
Why are rates going up? I’d encourage you to review the more detailed discussion in our Jan. 22 column. For now though, here are the basic issues: 1) Water rates have not increased since 1995, and, 2) we must replace our 62-year old sewer plant. (The sewer plant was originally constructed in 1953 and last upgraded in 1983.) Here’s a key fact — adjusted for inflation, water charges i
n Morro Bay have dropped 36% over the last 20 years.
The accompanying graph shows both the problem and the needed solution. The flat blue line shows water rates, with zero increase, for a typical family over the past 20 years. The red line shows how rates would have increased gradually, if we had raised them based on the 2.5-percent average inflation rate and the 1% annual increased cost of water due to drought, regulation, and increases in operating expenses. The sharp blue increase shows the painful rate hike we must implement over the next five years to make up for our failure to raise rates gradually over the past two decades. Continue reading Water, Sewer Rates Must Rise The View From Harbor Street →
A View From Harbor Street
