5PM Wednesday, Aug. 5 - Helix WD Meeting - PROPOSED WATER RATES!

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Dear Friends,
Here is the agenda and board package link for our Regular Helix Water District Board Meeting:  
AGENDA
REGULAR MEETING OF THE BOARD OF DIRECTORS
Wednesday, August 5, 2015 - 5 p.m.
7811 University Avenue, La Mesa, CA 91942-0427
Interesting Items:  
Item 6, pdf Page 36 The board approve the Helix Water District Comprehensive Water Cost of Service and Rate Study report prepared by Raftelis Financials Consultants, Inc., the proposed water service fees for water rates, the corresponding Proposition 218 customer notice and set the date and time for the public hearing as October 7, 2015 at 5 p.m.  
BRAND NEW WATER RATE STRUCTURE & 5 YEAR WATER RATES BEING PROPOSED –  (pdf Page 44 Cost of Service Study; Page 93 Prop 218 Notice).  
Last week, the Board went over the proposed new structure and water rates. The new rate structure is supported by the Comprehensive Water Cost of Service & Rate Study.
  At the end of last Wednesday’s Committee Meeting (approx 4:30pm) staff handed out the draft Five Year Projection using 2014/15 actual end of year numbers (see 2015-2020 5 Yr Projection Attachment). This was something that I had been asking for awhile (end of year numbers and projected future). Unable to thoroughly go through and discuss at the meeting as the Board President DeAna Verbeke stated that the meeting was to END at 5pm. So, I have reviewed it on my own and conferred with staff.  

• The end of the year numbers for 2014/15 were overall good for the District, revenue increase of $400K and expenses lower $2M (since May 2015 estimate).
  The Five Year Projection showed the rates that were being proposed and funds that have been allocated for the 5 years and corresponding rates. Here are the rates being proposed and how it affects the average user, dollars and percent increase from the year before. 
  See table above.
• The District will tell you they are proposing these huge rate increases primarily due to offset the sale of less water - I do not believe we should penalize our customers for conserving, we should make every effort we can to keep our costs low and offset as necessary.  
  
  We have a “Reserve Requirement Target” set at 10% operating revenues in the 5 years (this affects the previous rate increases accordingly).  See Cost of Service Study Page 20.
  
  Our District for the first time that I have ever seen has increased that number to 15.8%, an increase in nearly $6 Million Dollars! I believe that this is excessive in our planning, with every $600K is equal to a 1 percent increase in your water rates, hence anticipating a $6M more reserve funding is overcharging our customers unnecessarily!  
  Also, Helix is proposing using $1.5M rate stabilization funding in 2016/17 and repaying $1.9M back to that fund in 2019/20 all at once – I am not sure of the reasoning behind this. Currently, the District has $3.8M in our rate stabilization fund, perhaps we should use the funding (the peoples money) to offset some of these rate increases due to our mandatory conservation. 
  Helix will tell you that these are the maximum rates that we can charge you and every year we will re-evaluate during the budget – I think that the Board should place some maximum limits on what we are comfortable with not the staff. I do not like double digit rate increases, when we discussed this as a Board in May, all proposals were single digits, 8% max, with a 5 year Reserve Requirement of 10% not 15.8%! It almost appears as a bait and switch, and they just give me the document at 4:30pm, this last Wednesday!
    Here is an article in the UT of our meeting last week: https://shar.es/1tnNXW  
  Item 7, pdf Page 104 The board consider adopting Resolution 15-51 which eliminates the 10 percent penalty on tier 3 domestic water use or adopt Resolution 15-52 to clarify the emergency drought action plan Resolution 15-38, in response to the State Water Resources Control Board's emergency regulations for statewide urban water conservation
  Meeting to be held this Wednesday at 5 p.m. to allow for public comment.
  Hope you can make it!  
  As always, I welcome your comments and feedback.
    Per the request of the Helix Water District Board on May 16, 2012, the following language is to be added by all Board Directors in all outgoing Director correspondence. "This correspondence, and any documents attached hereto, reflects the individual opinions and positions of the above-named Director and does not represent the opinions or positions of the District's Board of Directors or the District.  Pursuant to Section 9.1-11(A) of the Helix Water District Policies and Procedures Manual, individual Directors, except as otherwise authorized by the Board, shall have no power to act for the District or the District's Board of Directors."
  
   
  
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