Don't Be Fooled

Take a look at

Measure U's Four Big Whoppers

What They Aren't Telling You

The new rates DO NOT unfairly shift the primary cost burden to low-volume and low-income users. (See below)
The cost burden will be felt primarily by high-volume users.
Measure U WOULD seriously jeopardize SLVWD’s financial standing. (See below)
The precipitous drop in revenue would have a devastating impact on capital projects and emergency repairs.
Limiting fixed charges in favor of volume-based charges is NOT more equitable. (See below)
The District’s primary costs involve bringing water to your tap without regard to how much water you use.
The District did NOT abandon its conservation goals with the new rate structure. (See below)
The new rate structure adopted a new tiered volume rate structure, where the cost of water increases as a user’s usage increases, the best way to encourage conservation.
The new rate structure does NOT punish low-income ratepayers. (See below)
The best way to support low income families is through the Low Income Ratepayers Assistance (LIRA)program.

High volume users will carry the primary cost burden.

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. 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. 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.

Measure U poses a serious threat to SLVWD’s financial standing.

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. 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.

The new rate structure is equitable.

Unlike most commodities sold on the market, 90 percent or more of the 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. 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. From a cost perspective, the amount of water you use is of secondary importance. 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. Fixed rates also provide more financial stability for the District.

The new rate structure promotes conservation.

Research studies have repeatedly found tiered rates to be the most effective strategy for promoting reduced consumption. [click here for more discussion: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://escholarship.org/content/qt9d19z2f8/qt9d19z2f8_noSplash_04f1c699e33547a1c0ab8db0b6836fcb.pdf?t=obc940

The best way to support low income households is through an expanded Low Income Ratepayers Assistance (LIRA) Program.

There is no available data regarding water usage rates by low income households, and, in any case, Proposition 218 prohibits using household income as a basis for setting water rates. Rates must reflect the costs to the district of delivering the water to each ratepayer.

Many low-income ratepayers are probably low volume users. As discussed above, these ratepayers will be paying about the average increase of all households. As shown in the table above, ratepayers with 4 or more residents will experience the lowest increases, and will in fact see cost savings in the first year. 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. The LIRA program was increased when the new rate structure was put in place.