With the city’s water utility $13.5 million in the red, the City Council is scheduled to vote on a plan Tuesday that could include raising rates incrementally through 2015.
Also included in the list of options to raise revenue is issuing a bond that, combined with recommended water rate increases that would boost revenues by 3% a year, would build an $11-million reserve and jumpstart badly needed capital improvements, according to a city report.
Residential customer rates under the plan would change depending on the amount of water used, according to a tiered structure. Commercial water rates would not be tiered.
Some council members on Monday said they’re on the fence about the change.
“I’m torn,” said Councilman Ara Najarian. “I’m balancing between the impact of an additional cost on our residents for our water service, but also aware we have to improve our infrastructure for the water delivery.”
Councilman Frank Quintero said he’s for a tiered rate structure, but hasn’t made his decision yet about increasing rates.