About 50% to 60% of the district’s water comes from local sources including wells and the Pickens Canyon tunnel. The rest is imported from the Foothill Metropolitan Water District, which acts as an intermediary to the larger Metropolitan Water District of Southern California.
The Southland wholesaler is raising its rates 20% later this year, and then again in January 2011. Those costs, in turn, will be passed on by Foothill Metropolitan to its own customers, including Crescenta Valley, officials said.
Operation costs, especially for electricity, will also continue to be a heavy burden. Crescenta Valley Water District spends roughly $750,000 a year to power its water pumps, and the cost for electricity continues to rise, General Manager Dennis Erdman told the board.
The water agency also pays Los Angeles for sewage treatments and disposal.
While the district has a cash reserve, it’s not enough to take the brunt of rising prices, which will have to be passed on to customers, officials said.
At the meeting, staff presented three budgeting options. One proposal included a 7% rate increase for customers over the next five years. Another, which received a warmer reception among board members, proposed a 5% rate increase over the next two years, followed by a 6% to 8% rate increase in subsequent years.
Crescenta Valley Water District Director Richard Atwater suggested adding a line to customer bills indicating which charges come from which water agency.
“If the price of imported water goes up 100%, we are going to pass that through because the customers need to know the price of imported water,” Atwater said. “It will encourage them to conserve.”
He also suggested creating a sort of financial cushion to protect against extreme price changes from Metropolitan.
Crescenta Valley Water District officials are scheduled to return with more refined budget proposals at the July 3 board meeting.
