Council Divided Over Water Rate Plans

The Glendora City Council came to a split decision on a proposed water rate increase, narrowly approving a public hearing on a five-year water rate proposal with a 3-2 vote during Tuesday’s meeting.

Residents will be notified 45 days prior to a public hearing on a five-year water rate increase plan.

City staff presented the council with two water rate options that would spread the fee increases – a 28.5 percent hike for the average user – over either a 3-year or a five-year period.

The fee increases are set to raise 5 million dollars annually to fund the capital improvement program used to rebuild the city’s antiquated water system.

The council’s decision overturned a recommendation by the Water Commission for a three-year plan, one that would have had higher bi-monthly fees for residents, but would have raised the city’s financial goals faster.

Mayor Doug Tessitor and Council Member Judy Nelson both voted in favor of the three-year plan.

“We’ve been playing catch up for the last eight or nine years,” said Tessitor, pointing to the city’s aging water structures. He said water rates should reflect capital improvement expenses because “that's where the expenses are.”

“Our system is aging and it needs a lot of work done to it,” said Nelson. “We need to fully fund it so we can ensure we have water for our city and the future, and now is the time to do that. This is one rate increase that we’re going to have to bite the bullet and go for.”

But council members Karen Davis, Joe Santoro and Mayor Pro Tem Gene Murabito voted in favor of the five-year water rate plan to lessen the financial burden on residents.

“I believe this is more palatable for our residents and still accomplish our goals,” said Davis.

Public Works Director Dave Davies said a five-year system, although cheaper to residents, would require the city to dip into its capital improvement account to carry them through inflation and increasing costs over the next five years.

City staff developed the two-tier rate system using baseline and discretionary rates through historical data to determine water used in each tier.

Both plans would fully fund operation and capital projects over the time allotted. Afterward, the rates will level and future increases will be due to inflation and the purchase of water energy.

According to city reports, energy costs have increased to 14 percent, with the city under-collecting on those costs.

With the new proposed water rate increases under a five-year plan, Glendora would be ranked number four on a list of the most expensive city water rates in the area with a bimonthly bill of $141 for the average user.