Notice of Public Hearing on Proposed Water Rates (Proposition 218 Alternative Increase)
NOTICE OF PUBLIC HEARING ON
PROPOSED WATER RATES
(Proposition 218 Notification)
Date: Wednesday, May 9, 2018
Time: 10:00 am
Location: 24917 Marion Ridge Drive, Idyllwild CA 92549
The original Notice of Public Hearing on the Proposed Water Rates was mailed on March 19, 2018. Last week, at our regular scheduled Board of Directors meeting on 4/11/2018, I presented an alternative plan on the proposed water rate increase. Why? Because I heard from a few of our customers that the first years hike was too much of an increase, in their opinion. Many thought it would be better if averaged over the entire five years. So, below is the new residential chart with the Fixed Cost averaged out over the entire 5 year period:
Fields that are highlighted are the changed amounts.
Residential Fixed:
| Year | Meters | Bi-Monthly Incr. | Actual/Yearly | Yearly Income |
| 2018 (now) | 1103 | $62.00/$372 | $410,316 | |
| 2018 | 1105 | $3.00 | $65.00/$390 | $430,950 |
| 2019 | 1107 (estimate) | $3.00 | $68.00/$408 | $451,656 |
| 2020 | 1109 (estimate) | $3.00 | $71.00/$426 | $472,434 |
| 2021 | 1110 (estimate) | $3.00 | $74.00/$444 | $492,840 |
| 2022 | 1111 (estimate) | $3.00 | $77.00/$462 | $513,282 |
| 2023 | 1112 (estimate) | $3.00 | $80.00/$480 | $533,760 |
Also discussed was the variable cost. Instead of increasing it from $1.80/1000 gallons to $4.00/1000 gallons, the first year, we would only raise it to $3.00/1000 gallons, and then spread the remaining increase over 5 y ears. See the revised chart below:
Variable Costs:
93% of our customers fall into Tier 1 and Tier 2. We propose changing Tier 1 from 6000 gallons to 7500 gallons, and Tier 2 from 12,000 gallons to 15,000 gallons. Tier 3 will apply to all water over 15,000 gallons, and we will eliminate the current Tier 4.
| Current Tiers & Price | New Tiers | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| 0-6000/$1.80 | 0-7500 | $3.00 | $4.00 | $5.00 | $6.00 | $7.00 | $8.00 |
| 6-12000/$3.10 | 7500-15000 | $5.00 | $6.00 | $7.00 | $8.00 | $9.00 | $10.00 |
| 12-18000/$4.40 | Over 15000 | $7.00 | $8.00 | $9.00 | $10.00 | $11.00 | $12.00 |
| Over 18,000/$7.40 |
Please remember all cost breakdowns were determined by the Districts Engineer, John Egan, of Engineering Resources of Southern California. I believe the Board of Directors were very satisfied and will be willing to adopt this new plan of averaging cost over the 5 year period.
If you should have any questions, or comments, please contact
Jerry Holldber, General Manager or stop by the office.
Pine Cove Water District
24917 Marion Ridge Dr.
PO Box 2296
Idyllwild, CA 92549-2296
951-659-2675(office)
951-659-3112 (fax)
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