No On Measure U

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<h2>There is no such thing as a free lunch.</h2><img src="https://run.imgix.net/46082156-0c76-4599-aae4-f73d0d1033a8/b26e4e8e-9cfd-4236-ad89-1327b5949673/b26e4e8e-9cfd-4236-ad89-1327b5949673.png?ixlib=js-3.8.0&amp;bri=0&amp;con=0&amp;sat=0&amp;high=0&amp;shad=0&amp;usm=0&amp;rect=0%2C0%2C886%2C885&amp;w=1500" alt="" caption="" align="right" alignwidth="40" variant="base"><h3>All systems that serve the public require funding to do their job.</h3>We can save a little money in the short run by not properly funding the SLV Water Board, but we will pay for it in the long run when pipes need to be repaired and we lose water service because there is no money to repair them with.In the Valley, we have witnessed first hand the effects of climate change: fires, storms, mudslides and more. These effects will increase, not decrease and consequently the cost of repairs will increase, not decrease.

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<h2>What Measure U Does:</h2><h3>SLVWD monthly water bills have two parts:</h3>“Fixed” baseline charges (labeled service charge, capital charge, and fire surcharge) that are independent of the amount of water consumed. This provides a stable revenue stream that reflects the reality that over 90% of SLVWD’s costs are tied to infrastructure maintenance, repair, and upgrade without regard to how much water a ratepayer uses.“Water rates” that are based on the amount of water used by a ratepayer. SLVWD has adopted “tiered” rates, which increase the cost of each gallon as use increases. This encourages water conservation and allows low-volume ratepayers to shoulder a smaller fraction of the overall financial burden.&nbsp;Measure U is exclusively concerned with fixed charges.<h3>Measure U has two key provisions:</h3>It repeals two separate monthly fixed charges:<ul><li>The “Capital Charge” ($7.65/month for most residential bills)</li><li>The “Fire Surcharge” ($9.67month (for most residential bills)</li><li> It limits any increase to the remaining fixed “Service Charge” (currently $48.04/month) to 2% per year through 2048.</li></ul><h3>What Measure U means for ratepayers:</h3><ul><li>If enacted, Measure U will take effect within approximately ten days.</li><li>Most residential ratepayers’ December bills will be reduced by $17.32.</li><li>The service charge rate is scheduled to be raised from $48.04/month to $52.85/month in January 2025.&nbsp; Under the current structure, residential fixed charges would be $70.17.&nbsp; If Measure U passes it would be $49.00, for a savings of $21.17.</li></ul><h5>These savings will most likely be temporary.</h5><ul><li>The severe reduction in revenue will force the SLVWD Board to propose a new rate structure as rapidly as feasible.</li><li>This new rate structure will most likely take effect sometime in mid- to late-2025, assuming the Board agrees to it and it does not face another ratepayer challenge.</li><li>This will likely eliminate much or all of the Measure U monthly savings and will likely increase water rate charges significantly.</li></ul><h3>What Measure U Means for SLVWD:</h3><h5>Simply by being placed on the November ballot, Measure U has already imposed significant costs and has damaged SLVWD’s financial standing.</h5><ul><li>The existence of Measure U has reduced SLVWD’s credit-worthiness, increasing the costs of obtaining needed loans by as much as $200,000 in additional loan-processing costs.</li><li> Santa Cruz County is expected to charge SLVWD between $40,000 and $80,000 in election-related fees.</li><li>SLVWD has incurred additional charges from its Legal Counsel and staff time that have yet to be fully tabulated.</li></ul><h5>If Measure U is enacted, SLVWD will lose roughly $140,000 in revenue in December and roughly $170,000 per month beginning in January 2025.&nbsp; A new rate study will cost $50,000 or more and require significant staff and board time.</h5><ul><li>The lost revenue could easily total $1 million before a new rate structure takes effect.</li><li>The new rate structure would have to recover roughly $160 per ratepayer to make up for the lost $1 million in revenue and the $300,000 in unforeseen expenses.&nbsp; Most likely, the district would have to sharply reduce its budget and expenditures, putting the valley at serious risk.&nbsp; CLICK HERE FOR MORE INFORMATION</li><li>Over the ensuing 25 years, the 2% cap on annual increases in the Service Charge will prove increasingly problematic.&nbsp; SLVWD’s actual costs will almost certainly increase far more rapidly than this, meaning that more and more of SLVWD’s revenue will need to come from water rate charges which are inherently less predictable and more complex to manage.</li></ul>

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<h2>4. SLV School District will be at risk for sharply increased rates over time.</h2>Our school district is one of the largest water users in SLV 6.6 million gallons in its last fiscal year.&nbsp; The new rate structure classifies the school district as an industrial user, exempting it from the tiered rate structure, resulting in modest cost increases for the five-year period.&nbsp; If Measure passes, any new rate increases will have to rely primarily on volume-based charges.&nbsp; Even a small increase in the industrial water use rate will cause he school district’s costs to skyrocket.

<h2>3. Staff Morale</h2>Staff cuts will almost certainly be necessary if Measure U is passed.&nbsp; The district’s budget covers primarily staff and fixed costs.&nbsp; The payroll will have to be reduced to absorb the loss of funds.There is already a real and troubling staffing crisis. The District Manager, Financial Manager, District Secretary and Environmental Department Director (who also served as grant writer and de facto Deputy Director) have all resigned in the last 10 months.&nbsp; The District Manager and Financial Director stated publicly that they resigned due to the harassment at the hands of Director Bob Fultz, a leading supporter of Measure U.&nbsp; The controversy and conflict generated by Measure U and its supporters has demoralized staff and made recruiting new staff a major problem.Our district’s staff is the backbone of the entire system.&nbsp; We need to respect, honor and thank the staff for their tireless work on our behalf to deliver safe, reliable water, while addressing the inevitable crises that will arise.&nbsp; We need collaboration, not divisiveness and ill-advised ballot measures that put the future of the district at risk and raises the specter of staff reductions.&nbsp; No wonder staff are leaving and recruiting is so difficult.&nbsp;

<h2>High volume users will carry the primary cost burden.</h2>As illustrated by these two charts, the new water rates rely on a tiered structure so that the cost of water per gallon increases sharply for high-volume users over the five-year period.&nbsp; As seen in Chart 1, by 2028, high-volume residential users (with pools and large gardens) will be paying twice as much per gallon each month for each unit above 8 units.&nbsp; Chart 2 shows that the financial burden is far more significant for those with moderate or large summer gardens and pools over the five-year period. The Measure U proponents fail to even mention the tiered rate structure that shifts the primary burden to heavy users.<img src="https://run.imgix.net/46082156-0c76-4599-aae4-f73d0d1033a8/0adfbe2e-ba4c-493e-a70a-55069b60ef82/686e29c0-d23e-471f-a522-efc9ee4a780f.webp?ixlib=js-3.8.0&amp;bri=0&amp;con=0&amp;sat=0&amp;high=0&amp;shad=0&amp;usm=0&amp;rect=988%2C565%2C1925%2C1131&amp;w=1500" alt="" caption="" align="left" alignwidth="40" variant="base"><img src="https://run.imgix.net/46082156-0c76-4599-aae4-f73d0d1033a8/cb944cba-5c15-4b97-b0d9-9bff1dcbcb55/32cb7eb4-1052-443c-b9bb-40c8edf34544.webp?ixlib=js-3.8.0&amp;bri=0&amp;con=0&amp;sat=0&amp;high=0&amp;shad=0&amp;usm=0&amp;rect=1132%2C563%2C1659%2C1144&amp;w=1500" alt="" caption="" align="left" alignwidth="40" variant="framed">

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<h2>Vote NO on Measure U.</h2><h3>Here’s why.&nbsp; It would:</h3><ul><li>Sharply reduce the San Lorenzo Valley Water District’s revenue, threatening our valley’s ability to recover from the CZU fire and to prepare for and respond to future wildfires and floods</li><li>Jeopardize our water district’s future – and could lead to bankruptcy, like what happened to Big Basin Water Company.</li><li>Adversely impact staff morale and commitment.&nbsp; We have already lost all of the district’s senior management.</li><li>Put the school district at risk for sharply increased&nbsp;rates over time.</li></ul>

<h2>1. Fire and Flood Safety Would be Threatened:&nbsp; </h2>If enacted, Measure U will reduce SLVWD’s revenue by about $140,000 in December 2024 and about $170,000/month in 2025.&nbsp; Even if a new rate increase is enacted, the loss revenue loss will be $1 million or more (see What Measure U Does for details).According to the district’s financial office, the district will be able to continue to cover routine operation costs.&nbsp; However, most capital improvement projects will be curtailed and the district will not have the resources to address emergency repairs in a timely manner.These capital projects are critical to our valley’s ability to recover from the CZU fire and respond to future disasters. With our history and climate change, we know more fires and floods are coming.&nbsp; Our water system has an aging infrastructure with undersized pipes, low water pressure and inadequate fire hydrants in many neighborhoods.&nbsp; Repairs to the system caused by the CZU fire and winter floods are far from complete. &nbsp; Fire hardening is also a high priority. The district’s ambitious capital improvement plan is being implemented now and is designed to address these problems.&nbsp;&nbsp;Our Valley’s safety and preparedness for the next fire and flood depend on a healthy, adequately-funded water district.&nbsp; If Measure U passes, the district will be just one major storm or pipeline failure from serious operational and financial peril.

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<h2>The best way to support low income households is through an expanded Low Income Ratepayers Assistance (LIRA) Program.</h2>There is no available data regarding water usage rates by low income households, and, in any case,&nbsp;Proposition 218 prohibits using household income as a basis for setting water rates.&nbsp; Rates must reflect the costs to the district of delivering the water to each ratepayer.Many low-income ratepayers are probably low volume users.&nbsp; As discussed above, these ratepayers will be paying about the average increase of all households.&nbsp; As shown in the table above,&nbsp;ratepayers with 4 or more residents will experience the lowest increases, and will in fact see cost savings in the first year.&nbsp; Low-income families with four or more members therefore benefit from the new rate structure.The best way to provide relief to low-income households is through an expanded LIRA Program, which provides subsidies to low income ratepayers using revenues not derived from water rates.&nbsp; The LIRA program was increased when the new rate structure was put in place.

<h2>Measure U poses a serious threat to SLVWD’s financial standing.</h2>If Measure U passes, SLVWD would lose about $140,000 in December 2024 and about $170,000/month in 2025, about $2 million by the end of 2025 unless a new rate increase is enacted.&nbsp; Many or most capital projects would come to a halt or be seriously delayed, and the district would lack the resources to address emergency repairs.

<h2>The new rate structure is equitable.</h2>Unlike most commodities sold on the market, 90 percent or more of the&nbsp;cost of delivering water to your home in SLV is not the water but the infrastructure to move it from the water sources to your tap.&nbsp; In other words, the service you are paying for is primarily the privilege of having clean, reliable water come from your tap when you turn it on.&nbsp; From a cost perspective, the amount of water you use is of secondary importance.&nbsp; Everyone benefits when a broken pipe is fixed, a leaky tank or undersized pipe is replaced, or a new water hydrant is installed, no matter how much water you use.&nbsp; Fixed rates also provide more financial stability for the District.&nbsp;

<h2>We thank you for helping us save SLV Water.</h2><h3><a href="https://secure.actblue.com/donate/saveslvwater.org" target="_blank" rel="noopener noreferrer nofollow">Donate Here</a></h3>

There are lots of ways to help our campaign :<ul><li>Request a yard sign and place it in a visible location&nbsp;near your property</li><li>Get familiar with&nbsp;our talking points from this site, and talk about it with friends&nbsp;and neighbors.</li><li> Help with social media outreach. </li><li>Follow us on Instagram&nbsp;@saveslvwater and Facebook: No on Measure U.&nbsp; Please&nbsp;share what we post on those accounts widely so your local friends know why it's so important to vote NO on Measure U.</li><li>We can use help putting out campaign&nbsp;signs, and if you have talents you'd like to offer to the campaign, please reach out and let us know what you have in mind.</li><li>Add your name to our list of endorsers; voters are most persuaded by folks they know and trust. </li></ul>

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The Press Banner, Santa Cruz Local, Santa Cruz Mountain Bulletin, Santa Cruz Sentinel, and SLV Post all agree: No on U.

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We need to invest in our future. Repealing current rates may be penny-wise, but it's pound foolish.

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<h2>The new rate structure promotes conservation.</h2>Research studies have repeatedly found tiered rates to be the most effective strategy for promoting reduced consumption.&nbsp; [click here for more discussion: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/<a href="https://escholarship.org/content/qt9d19z2f8/qt9d19z2f8_noSplash_04f1c699e33547a1c0ab8db0b6836fcb.pdf?t=obc940" target="_blank" rel="noopener noreferrer nofollow">https://escholarship.org/content/qt9d19z2f8/qt9d19z2f8_noSplash_04f1c699e33547a1c0ab8db0b6836fcb.pdf?t=obc940</a>

<h2>2. The District’s Future Would be Placed in Jeopardy</h2>Our water district is already facing a serious financial crisis.&nbsp; That is why it enacted the new rate structure and rate increase, following the required, complicated process that included multiple opportunities for community engagement.&nbsp; [Click here for more information on the new rate structure and its rationale. <a href="https://slvpost.com/the-slv-water-district-rate-hike-what-happened-and-why/" target="_blank" rel="noopener noreferrer nofollow">https://slvpost.com/the-slv-water-district-rate-hike-what-happened-and-why/</a>]&nbsp;&nbsp; The sad fact, ignored by the measure’s proponents, is that the costs of delivering safe, reliable water service are rising well above the rate of inflation.The measure would undo the District’s careful work to develop a fair and equitable rate increase. The District’s plan puts the primary financial burden on heavy water users and addresses the many challenges we face in continuing to provide safe, reliable water service to all.&nbsp;&nbsp;The district faces huge challenges even with the rate increase.&nbsp; Without it, we will be following the path of the privately-owned Big Basin Water Company, which is now in receivership.&nbsp; Its ratepayers have&nbsp;unreliable and often unsafe water supply and face plunging housing values.&nbsp;&nbsp;&nbsp;Responding to the next fire or flood, the next burst of an aging pipe (as recently occurred in Boulder Creek), the failure to replace leaky water tanks, and suddenly we can’t flush the toilet, don’t have water to put out a house fire, and have dirty water coming from the taps.&nbsp; This is literally the risks we are taking if we enact Measure U.Underinvestment is not a viable option.&nbsp; The savings now will be more than wiped out by avoidable increased costs in the future.

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