Water Council to Discuss Proposed Tiered Water Rates Tuesday

Tuesday's special Water Council meeting invites the public to discuss the proposed tiered water rate structure. This rate system, if adopted by the city, would charge residents an increased water rate as they consume more water, rather than the flat rate that is currently in place.

The rising costs of water coupled with over-consumption of water prompted the Water Council to recommend the tiered water rate structure, said the council's chair Diana Mahmud. 

"The Watermaster rate has gone up from $450 per acre foot in 2009 to $696 per acre foot in 2011," said Chu Thai, the city's Finance Director. "That was unexpected, and unanticipated," he added.

Operating expenses for the San Gabriel Basin Watermaster have also increased by 24 percent, from $4.4 million in 2009-2010 to $5.4 million in 2010-2011, Thai said. Current water payments from South Pasadena residents will cover most of the cost, but leave the city $300,000 short this fiscal year.

An increase in the water rate would prevent the city from dipping into its general fund to pay for the cost difference and also promote conservation, Mahmud said.

"As you use more water, the cost of your water goes up," she said, adding that electricity is billed this way. "When consumption creeps into higher tiers, the unit rate goes up."

Since the city is consuming 2,000 acre-feet more water than its allocation of 3,000 acre-feet per year, Mahmud believes that tiered water rates would help cover the cost of this extra water usage. Water that's used beyond the allocated amount is usually more expensive, she said. "At this point, water has become a commodity," she said, alluding to preceding years of drought which reduced water storage levels.

She also said that a California law enacted last year requires the city to reduce water consumption by 10 percent in five years and by 20 percent by the year 2020. 

Though the Water Council plans to come up with a water rate hike recommendation for the City Council, the group may need more time to design the final tiered water rate structure, Mahmud said.

For a press release and official Water Council documents, click on the pdf documents in the photo box above.