Hike in water rates will be greater than expected
By Nancy Needham  nancy@theacorn.com

Water in Thousand Oaks just keeps getting more expensive.

An increase in water rates over the next two years for customers served by the city of Thousand Oaks water system will be the topic of a public hearing during next week's City Council meeting on Tuesday night.

One of the reasons for the hike was an expected 5 percent increase in wholesale water prices.

Now it's been announced that the wholesale water prices the city pays to Calleguas Municipal Water District will actually be going up 10 percent, said Jay Spurgin, deputy public works director.

Because of Proposition 218, the city must hold another public hearing in the future if it wants to add that cost increase to the already proposed rate hike. That means the city will again have to notify water customers about the increases in advance of the hearing and notify everyone again about the next hearing.

The city cannot just make an adjustment to the rates to be presented at the hearing set for Tuesday, Spurgin explained.

Currently, a 12 percent increase is proposed for the first year and a 7.5 percent increase the second year.

Water connection charges would be hiked by 30 percent the first year under the proposal.

The city doesn't make a profit on water and has kept its rates lower than nearby water providers, said public works director Mark Watkins.

Revenues from the water fee cannot exceed the funds needed to provide the services, a staff report said.

About 16,000 residential and commercial customers will be affected. The Thousand Oaks water system serves about 37 percent of the city's water users.

While the cost of capital improvements was another reason cited for the proposed hikes, the wholesale price increase has an even greater effect on charges.

"Purchased water is twothirds of our operating costs," Watkins said.

City water customers were sent notices in the mail and can protest the increase in writing or in person at the hearing.

According to Proposition 218, water service charges are property-related fees and a majority protest in writing can prohibit the council from raising rates, Watkins said.

Proposition 218 doesn't affect the services provided by private water companies that follow a process set up by the California Public Utilities Commission.

The Water Capital Program adopted by the City Council in June includes $30 million in construction projects over the next 10 years. Cash flow projections for the next two years estimate that the capital fund reserve will be down more than $2 million even if the rates are increased.