Candidate Response: Alina Layng

4.     The District enacted a new rate structure in the spring of 2024, but Measure U seeks to repeal portions of the new rate structure and to restrict further increases in the base rate to 2% per year.  What is your view of Measure U?

I oppose Measure U and am actively working with the No U campaign to help defeat it. If Measure U passes, it will remove certain fixed charges and cap future increases at 2% annually. Proponents argue that fixed charges are unfair, especially for those who use little or no water. They contend that even minimal water users are being disproportionately affected by these fees.

However, in the San Lorenzo Valley (SLV) Water District, which covers a large, mountainous area, 90% of the costs associated with providing water go toward maintaining the aging tanks and extensive network of pipes that deliver water to homes, regardless of how much water is actually used. These fixed costs ensure that water is available when you want it.

Moreover, the current tiered water rate system that applies to how much water you use already incentivizes conservation. Customers who use less water not only pay for fewer units but also benefit from a lower price per unit. Residential users are charged based on usage tiers: 0-4 units, 4-8 units, and over 8 units.

If Measure U passes, however, there are significant risks:

  • Crucial infrastructure projects, such as those addressing aging pipes and improving water flow for fire hydrants, would be halted.

  • Firefighters may face inadequate water supply from outdated or missing hydrants during the next wildfire.

  • The district's ability to repair storm-damaged pipes would be compromised due to a lack of resources.

  • Borrowing money for future projects would become difficult, as the district's income may no longer support taking on debt. This could affect efforts to repair damage from past disasters like the CZU fires, especially since FEMA will only reimburse funds for repairs that have already been completed.

The district had planned to borrow $19 million for necessary upgrades but, due to concerns about reduced income following the introduction of Measure U, it can now only borrow $12 million. Limiting flat fee increases to just 2%, when inflation and rising costs for materials and labor are higher, could lead to financial instability.

In the long term, if Measure U passes the district will have to develop a new rate structure to recover lost revenue from fixed charges. This process would take months, incur additional costs, take up valuable board time, and require approval for new usage-based charges, potentially impacting entities like schools, which are exempt from the current tiered system but are among the district's largest water users. (Even a 5 cent per gallon increase would cost the schools an additional $300K per year more).

Water is crucial to the well-being of our community. Recently, a main water line burst at Boulder Creek Elementary School (BCE), forcing the school to remain closed until portable toilets and temporary handwashing stations could be set up. For three days, BCE was unable to flush toilets. While the pipe was already scheduled for replacement, if Measure U passes, there may not be enough funds to prevent similar issues in the future. Cutting water bills by $17 now could result in much costlier problems later, as we've seen in nearby districts like Big Basin Water.

 

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