Proposed SLVWD Rate Increase for 2024-2028

The Friends of San Lorenzo Valley Water (FSLVW) has taken two separate steps regarding the rate increase proposal approved by the Board at its December 7th meeting.

First, FSLVW has prepared a comprehensive FAQ aimed at providing accurate information for ratepayers. This FAQ includes historical background, rationale, and financial impact on ratepayers. Our goal is for all of the information in this document to be as objective and helpful as possible.

Second, as a result of our ensuing group discussions, FSLVW has prepared a separate document expressing our reasons for supporting the proposed rate structure. Our support is based on specific arguments that are not included in our FAQ.

FSLVW Statement of Support for the Rate Increase (PDF Version)

FSLVW Rate Increase FAQ (PDF version)

SLVWD Rate Increase FAQ

Prepared by Friends of San Lorenzo Valley Water 

January 5, 2024

INTRODUCTION

What is happening and why?

 

PART 1:  REVENUE NEEDS

Why is it necessary to increase rates?

Who performed the rate study, and what were its key findings with regard to revenue needs?

How do SLVWD water rates compare to other districts in the state?

Why have SLVWD expenses and water rates increased so dramatically over the past two decades?

What has SLVWD done to minimize its operating expenses?

What has SLVWD done to generate revenue from other sources?

Isn’t FEMA paying for most of the fire and storm damage?  What about insurance?

What infrastructure projects is SLVWD committing to?

Does the new rate structure have anything to do with future consolidations?

PART 2:  NEW TIERED RATE STRUCTURE

How does the proposed new tiered rate structure differ from the current one?

Why adopt tiered residential rates instead of keeping the current uniform volumetric rate? 

Why raise the fixed base rate so much?

How does the fire surcharge ($9.67 per month, found on everyone’s bill as part of the cost of water service) fit into the proposed rate structure?

 

PART 3:  CUSTOMER IMPACT

Why didn’t SLVWD provide more specifics on how the proposed rate structure will impact individual ratepayer bills?

What is the general impact of tiered residential rates on water bills?

How will the proposed rate increase impact specific family households?

Are there any programs to assist low-income households with these increased costs?

How will the new rates impact the school district and other nonresidential users?

What is the reasoning behind the “intertie” rate?

 

ADDENDUM:  EXPLANATION OF THE PROPOSITION 218 PROCESS

How does the Proposition 218 protest process work?

What would happen if the proposed rate increase were to be rejected?

FSLVW Rate Increase Statement of Support

Prepared by Friends of San Lorenzo Valley Water 

January 18, 2024

Why does FSLVW support the proposed rate increase?