The Santa Clarita Valley Water Agency is hosting a public hearing Tuesday, when it’s expected to approve a series of annual rate increases that will raise the cost of water by about $30 a month by the end of the decade.
The hearing is expected to start at the beginning of the 6 pm. meeting, according to Kevin Strauss, spokesman for the agency. If approved, the increases would begin to take effect July 1.
The rates are defined by customer service areas that refer back to SCV Water’s predecessor, the Castaic Lake Water Agency, which was eliminated in 2018 when it merged with the Newhall County Water District.
Former customers of the Santa Clarita Water Division of the now-defunct CLWA are projected to see the smallest increase, going from $67.69 a month to $96.66 monthly.
That same SCV Water customer in the former Valencia Water Division service area is expected to see the cost go up from $63.99 to $96.09, a 50.1% increase spread out over five years.
The service area for the former Newhall County Water District expects to see the largest increase percentage-wise, a hike of $31.28 a month, roughly 54%, over the next five years.
The monthly rates are based on a 10,000-gallon-per-month customer, Strauss said previously, which is about the average usage. He also said that, under state law, the agency isn’t allowed to charge more for water than its cost of delivery.
The agency has worked for months on outreach to explain the reasons behind the rate increase. Those costs include storage, pumping, treatment and distribution, Strauss said.
“It’s … outpacing inflation and higher construction costs over the last few years,” he said, listing some of motives for the new rates, “increases in regulation from state and federal maximum contamination limits in water samples, and testing for new items that are added to those lists. It’s new regulations when it comes to conservation and watering and turf and having those things in the community.”
That’s also why the various regions of SCV Water — the former customers of the Newhall County Water District, Valencia Water Co. and Santa Clarita Water Division — all pay slightly different rates, Strauss said. When the water retailers merged, legacy costs impacted the price for customers in the new agency.
The rate reviews are conducted every five years, and the rates are verified by an independent ratepayer advocate the board selects, he added.
Any ratepayer protest cards will be tallied at the beginning of the meeting, according to Strauss, who said that 50% plus one of all impacted property owners would need to submit a protest in order to statutorily stop the increase. He said 29 cards have been submitted as of Monday.
After the cards are tallied, SCV Water’s board is expected to discuss the ratepayer feedback and vote on the potential rate increase.
The meeting is being hosted at the SCV Water Agency’s headquarters atop Central Park in the SCV Water Administration Building.
A link to the virtual meeting is available here: bit.ly/4cd5EbL.
