Request #1198
Subject: The price of water -
Hi folks, Teri Sforza from the OC Register here to bother you again. Sorry to be a pest, but it's my job!
1) I've pulled "water enterprise revenue" numbers for both cities and special districts going back to 2003. City numbers go through 2014; special districts, just through 2013. (data from state controller; attaching spreadsheets for your perusal).
2) Cities that provide water service have seen revenues increase 78 percent between 2003 and 2014. Water districts have seen revenues increase 48 percent between 03 and 13.… while the amount of water sold actually decreased. (Am using numbers from MWD and OCWD's annual CAFRs for this piece.)
3) Am interested in hearing more about how this has come to pass. Water itself more expensive, tiered pricing making excessive use more expensive, penalties bringing in more money? And/or…?
4) Also interested in why cities are logging greater increases than special districts.
We are of course quite familiar with the water Catch-22: Officials call on folks to conserve; folks conserve; less water is sold; less money comes in to cover fixed costs; and rates go up to make ends meet.
5) We've all heard from angry people who feel that they're being punished for doing what they've been asked to do. How do you respond to them? Is there anything else to do?
6) And what's the rate increase landscape looking like going forward in your city/district, what with El Nino on the way?
Help! Thanks. I'm working on a Thursday evening deadline.
Correspondence
Dear Ms. Sforza,
Your request regarding the price of water has been processed and is complete. Please note, future requests can be submitted by accessing the City's website at www.ci.garden-grove.ca.us, On-Line Services, Public Records Request.
The following are the responses to your request provided by the City's Public Works Department. Please click on the link below to access documents provided.
1) Please see the attached revenue sheets for your reference for variances in FY 2009, 2013, and 2014 when tied to the City's CAFR.
2) Please see the attached expense report. In a decade expenses have risen from 15M to 25M.
3) The City of Garden Grove's costs are charged in accordance with Prop. 218 rules. For the City of Garden Grove, the water infrastructure is at replacement age for many facilities and we are replacing it. The City of Garden Grove is not in the paper with major water breaks due to cost effective maintenance and replacement strategies. We can not speak for other agencies.
4) The City of Garden Grove has not raised rates during the drought and we hope not to. If the City does, it will be to cover the annual construction cost index cost (ENG magazine). A possible increase would be a pass through of a Commodity Adjustment Charge due to increase in Import Water and Pumping (groundwater) rates. See attached Garden Grove Water Costs sheet for the rates for Import Water and Pumping from FY 2010 to 2016. Also included on the sheet are the City's past Commodity Adjustment Charges.
5) See above. The City of Garden Grove will only be increasing rates to adjust for the construction cost index and/or Commodity Adjustment Charges.
Sincerely,
Denise Kehn
Records Specialist
City of Garden Grove
714-741-5036
Additional information provided by the City of Garden Grove's Public Works Department.
Dear Ms. Sforza,
Below are the City of Garden Grove's budgeted figures for Water Capital Projects:
FY 2008: $1.4 million
FY 2009: $2 million
FY 2010: $18 million (water bond proceeds)
FY 2011: $5 million
FY 2012: $2 million
FY 2013: $2 million
FY 2014: $6 million
FY 2015: $2 million
FY 2016: $3 million
Unfortunately, the given deadline does not provide sufficient time for the City to gather the fund balances for Water Capital Projects for each year.
Sincerely,
Denise Kehn
Records Specialist
City of Garden Grove
714-741-5036