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I don't know what the Guinness Book of World Records can tell us about this, but I would think that a City that raises its water rates three times within a 5 year period would stand a good chance of getting a listing there. I can't imagine there can be too many others. Besides us, of course. We apparently are just a water rate raising machine. And wouldn't you know it, City Hall is at it again.
The way this is all being rolled out is just so tired and familiar. Perhaps you remember the last time the City raised our water rates. They concocted this rather specious story about how we needed to raise water rates so that we would qualify for Federal matching funds needed to repair our badly decayed water infrastructure. Millions of dollars would flow our way if only we were willing to pay more. They even sent poor Bruce Inman out onto the streets with a length of rusty pipe to better reinforce the message.
Of course, not much later that same year it was discovered by residents that there was actually a much different reason for the water rate increase. That being water bond covenants. The City of Sierra Madre, hard pressed to meet its obligations to the holders of our water bonds (which besides paying them regularly meant maintaining adequate levels of cash reserves in relation to the size of the debt itself), had seen its ratings plummet. Making any future refinancing of that $19 million in bond debt (interest factored in) too expensive to even contemplate. And that the true reason for raising water rates had precious little to do with Bruce's rusty pipes, and everything to do with water bond debt.
That story was broken on this blog, and shortly after then Mayor Joe Mosca finally began to talk about our out-sized water bond debt as a reason for the rate hike. The message changed, but the damage was done. City Hall's credibility was badly damaged, and resident opposition to a water rate increase grew like Topsy.
Tellingly, we have now had our water rates increased twice since then, and the pipes are still bursting and water continues to spill into the streets. Sadly, our Standard and Poore's water bond ratings continue to be far less than satisfactory as well. And should we attempt to refinance our bond debt, those ratings would prevent us from getting a better rate of interest. The result being the water department is smothering in debt, and there is precious little that can be done about it.
The reason why our infrastructure is so old and decrepit is that there has been little money available to do the necessary maintenance. Because the water department's debt load is as heavy as it is just under $1 million in precious revenue has to be sent off to banks and debt holders yearly in order to stay out of receivership. This is money that would have otherwise gone to repairing Bruce's rusty pipes and the many other things badly needing our attention.
Drive down any given Sierra Madre street and you can see the results of these years of neglect. Precious water gushing from broken pipes and crews feverishly working to do emergency repairs can be seen almost daily. There are literally hundreds of pipes in this town that could go at any time, and many often do. Our water department has been run into the ground, and what once was this City's cash cow is today on life support.
All of which brings us to last night's City Council meeting. For the third time in five years the City Council will try and raise water rates here in town. A consultant has been brought in, of course, and because of that there is a new story being developed to tell the residents. Consultants, as you must be aware, are not hired just to help with the nuts and bolts. They are also brought in to help deal with the sometimes troublesome people who will be asked to take a hit to their pocketbooks. In this case Sierra Madre's water ratepayers.
And what appeared to be rolled out last night had a certain social equity feel to it. The City needs to practice fairness when billing their customers. Fairness must abound and, no matter what your lot size or needs, that must be taken into account when the decisions are made as to how much each household must pay. A community of shared responsibility, with all paying more for the privilege. All backed up by new state laws that, according to the consultant, will help us achieve a newer and better tomorrow.
There certainly is a lot of caring here.
A possible allotment of 55 gallons per day per person was discussed as a possibility. Which would mean that each household would be required to register their personal business with the City in exchange for a billable daily allotment. Something that made one commenter last night wonder what you would need to do if the in-laws were to come to town for a couple of weeks. Would you have to go to City Hall and register them so they'd be able to take baths? They'd be even less pleasant to have around if they didn't.
Look, I am not particularly eager to go through the Prop 218 rigmarole again. It is expensive, time consuming and flat out hard work. And, as we saw the last time, no matter how large the outpouring of opposition to a water rate increase may be (and last time it was huge), there is nothing City Hall won't do to stop it. All they want is our money, and as much of it as they can get as possible.
So here is my unsolicited advice to the City Council. Please cut the crap. People are on to what you are trying to do, and this consultant concocted social equity scheme is about as transparently phony as any of the previous PR strategies. People don't want "fairness," they just want good service, a properly functioning water company, and rates that don't get raised over and over again.
You don't need a consultant to tell the truth. Veracity is free. The message shouldn't be kumbaya, it should be about the terrible shape the Sierra Madre Water Enterprise is in. And that needs to be backed up with the reasons why it is in the disastrous financial shape it is. The crushing bond debt, the years of neglect, previous irresponsible City Councils, and the reasons for the inability of the department to deliver water when the weather turns dry.
This isn't about flower power, it is about the chickens coming home to roost. Level with the people. They can handle it.
As Karin Schnaider explained last night, our Water Department has about 4 years left before it goes out of business. Public relations campaigns and consultant marketing schemes are not going to save it. Water Wise Owl will not be enough.
This has to be done. Otherwise people will hit the Prop 218 trail again, and I will join them. Remember, it isn't the crime that gets you, it is the cover up. The City needs to level with the people whose water rates they want to raise.
To do otherwise would be just too offensive for many to deal with.
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