We can fix our water and sewer rates!

 

We can fix our water and sewer rates!

Water should never be rationed by price.  Every household should be able to afford to water their yard, protecting their city from fire, as it was before water-rationing rates.  Every household should pay the same charge for sewer within their water service size class, as it was before water-rationing sewer rates. 

·        No unit rates on sewer; minimal unit rates on water.

·        All water overhead paid through monthly base rates to pay monthly utility expenses.

·        Water unit costs covered by a single unit price.

·        All sewer costs equally shared through base rates, no extra charges.

·        Rates to rise by inflation of actual utility costs, not the Consumer Price Index (CPI).

·        No franchise fees.  The City cannot charge a franchise fee for a business it owns.

 

We can do this by putting a city initiative on the ballot, creating a Ratepayer Utility Rate Board for Grants Pass, passing it, and electing its members after it passes.

·        Rates will be set by an elected 5-member Ratepayer Utility Rate Board (Ratepayer Board)

·        Ratepayer Board eligibility is open to any registered voter living in a residence that uses Grants Pass water and/or sewer and who does not work for the city in any other capacity. 

·        Each member of the Ratepayer Board shall take an oath to stick to the above financial principles in setting utility rates. 

·        Each meeting of the Ratepayer Board will begin with a statement of these principles.

·        The Ratepayer Board will meet 5 business days within one week per year to set the rates and shall be compensated $100 per day for their attendance.

·        The City Manager shall provide each member of the Ratepayer Board with the previous year’s expenses of the water and sewer systems, including the Ratepayer Board’s per diem, one week before Ratepayer Board meetings begin.

 

Before we can do any of this, we need: a group to help write the petition; people to circulate the petition for the ballot; and people willing to serve on the Ratepayer Board.  All of this will be quicker and easier with money, so please donate.  We could use a website, too.  All of this must come together before we can even start to circulate a petition.  Fortunately, we get 2 years after the petition is approved to circulate to finish.  Let us know if you are interested in helping.

           541-955-9040                                        rycke@gardener.com

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Rationing rates have relatively low base rates and high unit rates, designed to cause less use of a product or service.  They give us cheap access to water and sewer service and make us pay through the nose to use it.  Worse yet, as use keeps dropping, rates are hiked by more than inflation every year to cover overhead in a very high-overhead business.   Overhead is the cost of the whole water or sewer system, bills that must be paid monthly regardless of use: debt payments; salaries; maintenance budgets; electricity for lights and computers.  Unit costs rise and fall with use of the utility, like water-cleaning supplies and power for pumping.  (Sewer will have no unit price.)

 

Grants Pass has had water-rationing rates since the 1990s but got serious about it in 2006 with much higher tiered unit rates and a lower base rate.  Water use dropped a lot. In 2008, City staff told the Council that their conservation rates had worked so well that the water plant could not pay the overhead.  Staff asked the council to raise the base rate by $3, which they said would stabilize revenues.  Council passed the base rate raise but it didn’t stabilize revenues because the unit rates were too high; the base rate was too low; so people kept cutting back on use.  After that, Grants Pass raised base and unit rates by the same percentage yearly to pay the overhead, until the City Council dedicated $3 million in America Rescue Act money to the new water plant and cancelled the last 2 yearly raises in rates for the new plant to compensate ratepayers.  But they are still raising rates by the CPI and will likely raise them to cover overhead every year.

The city started rationing rates on sewer in 2013, basing sewer units on the average of each winter month’s water use.  Sewer unit rates are especially bad for ratepayers and the sewer system because unit costs of cleaning sewage are much higher than for water.  They are particularly hard on the poor who must live many to a house and put a lot of water down the sewer.  When people cut back on water use by reducing what goes down their drains, they cut the water needed to make sewage flow smoothly.  Since sewage unit rates began, we have had sewage pumps clogging.  This is why we didn’t charge for sewer units before, and Medford and Portland still don’t.

 

When revenues don’t meet overhead expenses, maintenance is the easiest expense to cut.  Grants Pass never budgets what is recommended for replacement of pipes.  We had rationing rates for at least 20 years before we were told that our 80-year-old water plant is falling apart and we need a new one.  Electricity and natural gas utilities started rationing utility rates in the ‘70s, which is why we have had forest fires and gas leaks started by poor maintenance of power and gas lines.

 

Water-rationing rates have spread to cities around the world, making weather more variable and temperatures more extreme worldwide, causing bigger fires closer to cities, sometimes burning right through them, due to lower humidity from much less irrigation.  It’s time to start the Great Ratepayers Revolt by taking control of our city utility rates.

 Rycke Brown, Natural Gardener       541-955-9040         rycke@gardener.com

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