Politics & Government

Water Rates Likely to Rise Come July

EBMUD is studying a water rate hike of at least five percent.

Be prepared for higher water rates come July 1. Although just how much higher has yet to be determined.

The board of directors of the East Bay Municipal Utility District discussed plans on Tuesday for a 5 percent rate hike for both water and sewer services starting July 1, 2011, the beginning of fiscal year 2012. (San Leandro residents get water service only from EBMUD, not sewer services.)

The rate hike would be lower than the one seen by customers on their water bills at the start of fiscal years 2010 and 2011. Still, the increase would add about $40 per year to the average home’s water bill, according to estimates presented by EBMUD staff.

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The proposal was part of the budget proposal staff presented to the EBMUD Board of Directors for 2012 and 2013.

Nevertheless, water rates could ultimately increase even more, as the board attempts to balance staffing needs and employee demands with customer satisfaction.

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Demand for EBMUD water is down, in part because of abundant rain water this year, and because of the weak economy over the past several years. Plus, EMBUD’s pension liabilities and worker health care costs have increased.  

To offset these losses and avoid an even greater rate increase, staff proposed continuing a hiring freeze as well as defer maintenance and non-essential capital improvement projects on dams, pipes and water plants.

In addition, the water district’s main employee unions agreed late last year to forego pay raises and cost-of-living increases to help EBMUD cut costs.

Several representatives of employee unions spoke up at the budget workshop on Tuesday, saying they felt slighted by the proposal and that workers were bearing the brunt of the district’s budget constraints.

“This is the thanks they get? Balancing the budget on the back of our employees?” asked Mark Foley, president of one of the two main water district employee unions.

Even though workers have not been laid off, EBMUD has left dozens of positions unfilled in order to cut costs. Union representatives fear that, in the future, when the district is forced to revive the maintenance projects currently on hold, contract workers will be hired to do the work.

“If you leave maintenance long enough, you have to contract out,” said union representative Ruben Rodriguez after the meeting.

Board members were concerned enough with the budget proposal that they asked for alternate scenarios for balancing the budget. Several said they would be willing to increase water rates by 6 percent instead of 5 percent.

The board will discuss the budget further at a public workshop on April 19. EBMUD plans to hold its final public hearing on rates and charges, and present its final budget, on June 14.


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