By Jondi Gumz
The San Lorenzo Valley Water District proposes to increase water rates over the next five years, to fund replacing outdated infrastructure, make repairs necessitated by the 2020 CZU lightning fire and the 2022-23 storm and cover the costs of inflation and state mandates.
Under Proposition 218, property owners have “a right to vote” on taxes. Property owners can protest increasing fees by filing a protest ballot, which was mailed to water account holders. If a majority — 50% plus one — of parcel owners protest, the rate increases cannot be adopted.
The 120,000-gallon Blue Ridge water tank in Boulder Creek, part of the San Lorenzo Valley Water District system, replaced an undersized redwood tank.The $887,745 steel tank project was complete in October.
Protest ballots must be received by Feb. 15, which is the day of the public hearing at which the five-year series of rate hikes is scheduled for approval.
The San Lorenzo Valley Water District board meets at 6:30 p.m. at their conference room, 12788 Highway 9, Boulder Creek. If approved, the new rates could take effect in March.
The single-family residential charge per unit, currently $12.66 a month, would dip to $8.69, then rise to $11.72 a month.
The monthly service charges for a ¾ water line, standard for residences, would increase from $35 to $65.
A new fee is proposed for capital projects, starting at $7.65 a month and rising to $10.33 a month.
The district has undertaken a $13 million investment in new pipelines and tanks to replace old infrastructure, some damaged in the CZU Fire.
For someone using 2 units of water (a unit is 748 gallons) which is possible in winter when gardens do not need to be watered, the charge would increase by $70 a month to $83 a month, according to the district.
For someone using 6 units of water, which the district says is typical, the increase would be from $121a month to $124 a month. Gardens may require more than 6 units in the summer.
A large user using 16 units would see an increase from $248 a month to $282 a month, according to the district.
The proposed water rates are based on a study by consulting Raftelis, which evaluated operating and capital costs and revenue stability.
Since August 2021, the district has collected a surcharge of $9.87 a month from residential customers to go toward an estimated $5 million in expenses from the CZU fire not covered by FEMA disaster aid. Those damages totaled about $20 million.
That 5-year surcharge expires in 2026.
The district says 85% of revenues come from its ratepayers. The district has 7,500 connections — down from 7,900 before the CZU fire — in Boulder Creek, Brookdale, Ben Lomond, Felton, Zayante, and Quail Hollow in the San Lorenzo Valley and Whispering Pines and Manana Woods in Scotts Valley.