San Carlos residents may have to bear three years of 3% annual increases in wastewater rates, after a single year of no increase and three years of 4.5% increases, to pay for massive improvements to sewage systems.
The annual increase, applied to both residential and nonresidential sewer rates, is needed to ensure funding for operation and maintenance for both the city and Silicon Valley Clean Water, staff reported to the San Carlos City Council April 8. Primarily, the rate increase helps address costs of SVCW’s Regional Environmental Sewer Conveyance Upgrade program, which has 11 projects that will result in a full replacement and rehabilitation of its sewage systems.
In addition to SVCW’s planned capital improvements, revenue concerns include the city’s maintenance of its aging sewer system and anticipation of significant development in San Carlos in coming years. Additionally, the increase will help the city in meeting debt coverage ratios, reserve targets and maintaining the city’s credit rating.
The City Council passed a resolution to hold a public hearing on the increase June 10. The resolution is passed in an effort to move forward with Proposition 218 processes, which requires ample notification to property owners of proposed changes to service rates. With this, notices must be sent out by April 26 to comply with the 45-day noticing period ahead of public hearing. If there is not a majority protest present at the June 10 regularly scheduled council meeting, rates will go into effect July 1.
“What we don’t want to see is, four years from now, when we do this again, a big increase for the council to consider,” Maltbie said. “We have a high degree of confidence that we’re on track to do that and provide that stability to ratepayers in our community.”
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Residential rates are set at a fixed annual rate per dwelling unit. Current sewer rates are $1,401.27 annually for single-family residences and $1,203.44 annually for multifamily residences. Multifamily residences are fixed at a lower rate than single-family residences because of the smaller proportional contribution to the overall wastewater system.
The city offers a Sewer Rate Reduction Program to residential single-family households based on their gross annual household income. This provides a 10% discount to residents on PG&E’s California Alternate Rates for Energy program.
Councilmember Adam Rak said the discount income threshold is “pretty low” and asked if there was more the council could do for those with lower incomes that might be above the low threshold. He noted how various utility rates are expected to continue to increase in coming years.
Mayor John Dugan voiced similar concern and said he would welcome consideration of any other agency measuring income at other levels than PG&E.
“PG&E levels are quite low and not that useful to many people who we would consider for below-market-rate housing, for example,” Dugan said.
Customers who may qualify can contact PG&E to sign up for the CARE program by calling (866) 743-2273.
Remember a few years ago when there was a budget surplus and San Carlos opted to give out generous raises and bonuses to employees (of which are also calculated into pensions)? Guess what, the bill has been and will continue to be due whether the city has the money to pay for them or not. Enter taxpayer ATM withdrawals. This 9% over three years will cover just some of the increased salaries and pensions.
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Remember a few years ago when there was a budget surplus and San Carlos opted to give out generous raises and bonuses to employees (of which are also calculated into pensions)? Guess what, the bill has been and will continue to be due whether the city has the money to pay for them or not. Enter taxpayer ATM withdrawals. This 9% over three years will cover just some of the increased salaries and pensions.
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Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.