County farmers will lose $150,000 in water discounts next month,
though water district officials softened the blow by scaling back
plans that would have meant a 50 percent increase in water costs
for the largest farms.
San Jose – County farmers will lose $150,000 in water discounts next month, though water district officials softened the blow by scaling back plans that would have meant a 50 percent increase in water costs for the largest farms.
Seventy percent of farm operations will see an 8 percent increase in water costs in the fiscal year beginning July 1, while a number of small farms will see significant drops in water prices under rates approved Friday by the Santa Clara Valley Water District. On the same day, the agency’s governing board tacked $25 to the yearly water bill for the average five-person family, raising it from $230 to $255.
“I think that’s a reasonable amount of increase for the water rates, and much more fair than the original staff suggestion,” said Jenny Derry, executive director of the Santa Clara County Farm Bureau. “I think a good number of the water district board does support agriculture.”
The water rate adjustments are the latest episode in a financial tug-of-war between North County water consumers and South County farmers.
“We’re asking the people of the county again to contribute more money to support agriculture in South County,” said water board member Larry Wilson, referring to a proposal to preserve lower water rates for farms. “We’ve been trying to stop doing that.”
For seven years, two-thirds of the county’s biggest farms, or fewer than 100 growers, have received significant discounts on water rates under a pair of programs that promote water conservation and efficient use of fertilizers. The $7.50 savings on the standard water rate of $21.50 per acre-foot (enough to fill a football field 1 foot deep) have inspired most farmers to sign up repeatedly, even though the education program was supposed to expire after just three years.
“I really believe agriculture is something we’re trying to protect,” board member Richard Santos said. “Eventually there will be malls out there, so how long we can prevent this I don’t know.”
The majority of the board agreed Friday that farms deserve a price break, at least for an additional year, but they refused to permanently lower the cap on water rates.
The price farmers pay for water is currently capped at 10 percent of municipal and industrial rates, or $21.50 at current levels.
Retired farmer and board member Sig Sanchez proposed lowering the cap from 10 percent to 5.5 percent, or the current $14 rate.
Fellow board members instead agreed to set water rates at $15.50 – a bump in step with the percentage increase on South County municipal and industrial water consumers.
“That’s a threshold question,” said board chairman Tony Estremera. “I think we’ve done enough heavy lifting this year.”
About 30 percent of South County farmers will see their rates reduced from $21.50 an acre foot to the recently approved $15.50.
Meanwhile, a portion of the savings from the education programs will help finance the district’s proposed Strategic Initiatives, a roster of programs expected to cost $8.2 million. The proposed spending includes $50,000 to plan for global climate change, $305,000 to upgrade the district’s Web site and perform public outreach, and $735,000 to plan for and train new leaders as the district braces for a wave of retirement. It also proposes creating a new position charged with analyzing how the district can reduce costs.
The board meets Tuesday to continue its annual budget review. The meeting takes place at 5700 Almaden Expressway. A final vote on the Fiscal year 2007-2008 budget is expected June 26.
