Grover Beach proposes water rate increase
March 19, 2012
Grover Beach officials are proposing a 10 percent water rate increase to make up for a budget shortfall partially caused by a loan defaulted on by the city’s now defunct redevelopment agency. [Tribune]
In an attempt to close an estimated $196,186 deficit in the water fund budget city officials had planned to cover through the repaying of $900,000 the water fund had lent its redevelopment agency, city leaders are proposing a cost increase that would leave customers using between 20 to 25 units of water paying $7.79 more every billing cycle.
Earlier this year, state lawmakers voted to close redevelopment agencies throughout California in order to help balance the budget. Meanwhile, Grover Beach customers have become more frugal with their water usage leaving the city falling behind on its estimated water sales.
If passed, the proposed the water rate increase will be the third customers will have been given in less then two years. Following a July 2010 city council vote, the city raised its water rates by 15 percent in August 2010 and another 15 percent in March 2011.
In addition to the suggested water rate increase, city officials are also proposing an additional fee to customers of $4.55 per month to cover the cost of developing a state mandated storm drainage system.
In order to halt the proposed increases, at least half the city’s 4,800 water account holders would need to submit a written objection before or during the city council meeting scheduled for 630 p.m. tonight at City Hall.