Posting on behalf of Kim Rosenberg
loretta.kim.rosenberg@gmail.com
Splish, Splash
At the recent Budget Adoption meeting and the June City Council Meeting, Councilor Tom Campbell addressed the referendum filed by Randy Kugler regarding water billing. Campbell also remarked on a conversation the two had about the water fund and indirect allocations. Once Campbell did his own research, he learned that the facts were a little different from how Randy presented them.
Someone who signed the petition for the referendum had a similar experience with the canvasser who came to their home. The canvasser said the petition was to restore quarterly billing and the old base rate. Again, not quite true.
Let’s start with the question this referendum will place on the ballot.
“Shall the City of Manzanita read water meters and bill for water service on a monthly basis rather than a quarterly?”
A yes vote would mean we pay monthly while a no vote would mean we’d revert to quarterly. It doesn’t increase the base rate allowance from 2,000 to 4,000 gallons and it doesn’t mean we will or can revert to the old water rates.
Why was the tiered system adopted in the first place and why did the rates go up?
To understand more I read the most recent executive summary of the October 2023 Water Rate Study prepared for Manzanita by the Oregon Association of Water Utilities (OAWU). I’ve included a link to the study so you can read it yourself.
There are a lot of numbers, but the Executive Summary is surprisingly easy to read. It was written by water and utility professionals who know the subject and don’t have a horse in this race. They looked into the math.
In 2023 when they did the most recent study the consumption charge per 1,000 gallon unit of water was $2.50 for residential customers in the city and $3.25 outside the city with 4 units allowed in the base rate (4,000 gallons). The study averaged both full-time and part-time residences because whether they’re in town or not, part-time homeowners still pay the base rate.
The last increase in water rates was $5 a month to Single Family Residences (SFR) in October of 2014. We all know the price of everything has gone up over the last nine years, but our water charges haven’t.
Okay, here comes the math! We annually produce and sell about 81,011,365 million gallons of water and the cost of producing that water is $1,687,953.76.
One unit of water is 1,000 gallons and costs $20.84. So, the actual cost of 4,000 gallons of water per month would be $83.36.
At the end of the day (and the budget cycle) we’re short $575,504.38. (OAWU Executive Summary p. ii and iv).
The report looked at simply splitting the costs equally between all types of users—households inside and outside town, regardless of how much of the 4,000 gallons they use, and the commercial businesses. Under that method it would be $76.36 monthly for everyone, but it wouldn’t be fair. Kind of like when you decide to split a check equally at a restaurant and you got a salad and water but everybody else had drinks, wine, apps, mains, and desserts—oof!
One of the goals of the study was to make any changes as fair and equitable as possible. People would pay their fair share based on water usage. Those who use less water would pay less and people or businesses that use more would pay more. One of the advantages of the tiered system is that most households use less than 2,000 gallons monthly except in summer so most would only see a $7 increase in their bill for much of the year.
In the summer, many of us use more water. We have gardens and bird baths and wading pools and sprinklers.
During the summer months, let’s add to that. Vacation rentals are mostly occupied, as are second homes and the campground. All those people use water too. Vacation rentals and motels do laundry. A lot of laundry. Depending on occupancy and turnover some do loads and loads of laundry every day. Some have hot tubs. Plus, visitors take showers, do the dishes, and flush the toilet. At least we hope they do.
“The discrepancies are only exacerbated as higher volumes of water are consumed. When the unit production cost (currently $20.84) is more than the unit sold price, an adjustment in the rates is necessary.” (OAWU Executive Summary p.iv)
Why shouldn’t people using more water pay for it, including those of us who live here full-time?
In Oregon, at least Western Oregon, we’re used to thinking of water as a free or close to free thing. That doesn’t reflect reality because getting the water we have from its source to our homes isn’t free. Safe, clean water is not the limitless resource we used to think it was. Just ask the folks who live in California, Colorado, Nevada and Flint, Michigan.
Paying for what we use isn’t a punishment, it’s just a fact of life. We’re used to not having to think about water, but our neighbors in Nehalem and Neahkahnie struggle with water use every summer. Conserving what we have and mindfully using less is the way we make sure there’s water in the future and that we have a reasonable water bill.
According to a records request I submitted, legal fees for the referendum as of June 7 are $4200. There will be more legal fees in the next billing cycle. I assume it will be a similar amount. In addition, we have a second water study underway which will cost another $8500.
I have to wonder how many people signing the referendum actually read the water study for themselves or watched the water presentation or the council work session when the information was presented and discussed? Use your own noggins and school yourselves, kids.
ci.manzanita.or.us/wp-content/uploads/2024/06/Manzanita-Rate-Study-October-2023.pdf
Kim Rosenberg loretta.kim.rosenberg@gmail.com
