Business & Tech

Water Rate Increase Could Pay for Bond

A proposed water rate hike could pay for a multimillion-dollar bond as aging infrastructure and water imports are needed for the local water supply.

is considering a multimillion-dollar bond, which could mean a rate increase for local water customers, according to the Glendale News-Press.

Instead of relying on water imports, water officials want to replace old pipes and pump more water, but they need a rate increase to pay for it, , Crescenta Valley Water District board member and told Montrose Patch. 

The highest bond option would be a $10-million, 30-year bond (on top of the $10-million bond the district issued in 2007, expected to end in 2037), the News-Press reported.

Find out what's happening in Montrose-La Crescentafor free with the latest updates from Patch.

The board could also choose a 'pay-as-you'go' strategy and boost rates twice in 2012, the News-Press reported.

The Metropolitan Water District of Southern California has raised its rates the past several years and another hike is predicted for next year, the News-Press reported. CVWD buys about 40 percent of its water the metropolitan water district.

Find out what's happening in Montrose-La Crescentafor free with the latest updates from Patch.

Since many locals have begun conserving water under drought conditions and water limitations from the city, the CVWD has lessened revenue, CVWD General Manager Dennis Erdman said at the Crescenta Valley Town Council October meeting.

Check Montrose Patch's 2011 Voter Guide for the CVWD Special Election

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