Clovis council OKs water rate hikes

Clovis water rates will be rising 20% beginning in January after the City Council approved a fee hike Monday night.

The vote on the plan, which also triggers future increases of 15% in July, 15% in July 2011 and 5% in July 2012, was 5-0.

The increase will bolster the city’s water enterprise fund — which pays off the cost of bonds and is in danger of falling below where it needs to be. The bonds pay for the city’s water-treatment plant.

With fewer homes being built, there are fewer rate payers than expected to share costs, but the city still has to pay off $44.3 million in bonds for the plant, canal upgrades, a water-banking project and water lines, city officials said.

Another reason for the increase is the price of chemicals and electricity. In 1991, the city paid $767,000 in the energy portion of its water bill compared with more than $2.6 million today.

Residents, with an average use of 17,000 gallons per household, pay $17.48 a month.

In January, that rate will rise to $20.81. When the increases end in 2012, the average rate will be $28.92. Rate payers are billed every two months.

Without the increase, staff would be laid off and the city would have to close its water-treatment plant, leading to less water supply, increased use of wells and rationing, said Lisa Koehn, the city’s assistant public utilities director.

During 90 minutes of comment, residents addressing the council said they could live with increases, but not such large ones.

Resident Howard Cook said the city should be raising rates more gradually and asked the council to defer its decision.

“I understand that you can’t continue to operate without some increases, but what you’re asking residents is excessive,” he said.

Ronald Vitucci said the economy is costing people their jobs, families are losing homes and businesses are closing, but he said the increase is “too, too much.” He said a 10% increase the first year would be more reasonable to start.

Even with the increases, the city’s rates will be fourth-lowest among 18 cities surveyed by the city from Redding to Bakersfield.

The last time water rates were increased was 1991. Council Member Bob Whalen said the cost-of-living increase since 1991 matches closely with the rate increase.

Rate increases were not required sooner because the city was growing quickly, but revenue has slowed along with development. When there are fewer new rate payers being added to the system, costs are shared by a smaller number of users.

In 2004, the city’s water and sewer rates were re-adjusted and residential users started paying more for water. Commercial users paid less following that decision. For sewer service, residential users paid less and commercial users paid more.

By Marc Benjamin / The Fresno Bee