GILROY
– If you don’t want to see your water bill grow by 25 percent
next fiscal year, speak now – or on Monday, actually, at a special
public hearing in Morgan Hill.
GILROY – If you don’t want to see your water bill grow by 25 percent next fiscal year, speak now – or on Monday, actually, at a special public hearing in Morgan Hill.
In anticipation of a $660,000 increase in imported water delivery costs and a $400,000 spike in its own operating costs, Santa Clara Valley Water District directors are considering a 25 percent rate hike on drinking water. The increase would raise drinking water costs from $160 per acre foot to $200, $20 an acre foot more than what the district had already planned.
An acre-foot of water is roughly 326,000 gallons of water, or enough water to serve two typical families for one year.
“Revenue from charges for water has not been keeping up with costs,” district spokesman Mike DiMarco stated in a press release. “Under the current rate structure, South County’s water utility budget could face a cumulative deficit of as much as $3.2 million by the end of next fiscal year.
If the water rate hike is approved, monthly bills for Gilroy residents using 1,500 cubic feet of water per month could rise from $14.83 a month to $16.19.
In Morgan Hill, water bills for the same amount of monthly water usage could see an increase from $24.90 per month to $26.26.
DiMarco said the water rate increases are not being proposed to offset costs related to perchlorate contamination. After it was discovered that Olin Corp. inadvertently had polluted the Llagas groundwater basin with the rocket fuel ingredient, the water district provided free well testing and bottled water delivery to affected residents.
“The district expects to recoup all perchlorate-related costs from (Olin),” DiMarco said. “In the meantime, those costs are being paid from reserve (accounts).”
According to the district, water costs are increasing because imported water rates from the Central Valley have gone up. Overall, the district said, the Central Valley Project will see a $6.8 million increase in its costs during fiscal year 2004-05.
Also, operating costs within the Santa Clara Valley Water District have spiked. The district is spending more money than ever on security and environmental cleanup.
The public hearing will be held at the Morgan Hill Community and Cultural Center, 17000 Monterey Road at 7 p.m. Details: Call the water district at 265-2607 Ext. 2238.
