Village News - Also serving the communities of De Luz, Rainbow, Camp Pendleton, Pala and Pauma

Water and sewer rates restructured and expected to rise next year

 

Last updated 9/15/2017 at Noon



FALLBROOK – Water and sewer rates are likely to increase for Fallbrook Public Utility District customers beginning with January bills. Some customers will likely see bigger increases than others depending on their usage, some customers could see decreases on set fees, and various service charges will likely change – some increases, and some decreases.

At this point, the rates are proposed. The FPUD board has not yet voted on the restructured rates as District legal counsel reviews them. They will probably go to the board for a vote at the December board of directors meeting.

The reason for the restructured rates is that FPUD’s financial consultant conducted a comprehensive cost-of-service study earlier this year. Rate studies help public agencies appropriately structure rates and fees to correspond with the cost of providing service, which is a requirement of Proposition 218, which was passed by voters in 1996.

Prop. 218 requires that public utilities charge customers only what it costs to provide the service. It prohibits government agencies from allowing some customers to subsidize other customers.

Utilities that do not develop their rates using a cost-of-service study are exposed to litigation. Litigation over rates has occurred recently in California, specifically with the San Juan Capistrano Water District rates case.

FPUD hired Raftelis Financial Consultants to perform the study in 2016. Raftelis evaluated FPUD’s rate structure and developed a 10-year financial plan. That plan involves costs of replacing aging pipelines and infrastructure throughout the District’s service area, as well as the increasing cost of imported water.

“Though the new rate structure is not yet in place, our priority is reaching out to all our customers to let them know rates will be changing in January,” said Brian Brady, general manager. “We are sending targeted letters, will hold public meetings, and doing other outreach so our customers are informed before it happens.”

Proposition 218 letters will be sent in October, informing customers of public hearings for rate discussions. Customers are also invited to attend District board meetings, held the fourth Monday of every month at 4 p.m. at District headquarters, 990 E. Mission Road.

 

Reader Comments
(0)

 
 

Our Family of Publications Includes:

Powered by ROAR Online Publication Software from Lions Light Corporation
© Copyright 2018