Wastewater Service Rates Set to Increase Slightly

Scotts Valley residents will soon see a slight increase in their wastewater service rates.

The city council voted unanimously at its meeting Wednesday night to increase the rates, which have not been raised since the 1995/96 fiscal year, after going into the third year in a row of large deficits.

According to a report by City Manager Steve Ando, wastewater expenditures exceeded revenues by $193,000 for the 2011-12 budget.

“If we are starting to run some deficits, I think it’s time if it’s been 15 to 16 years since we’ve raised those fees,” Councilman Randy Johnson said.

Vice-Mayor Donna Lind agreed, adding that the current fees are far below the standard throughout the county.

The council recommended an increase of 4 percent spread over four years for single-family detachable homes. The current rate in Scotts Valley is $25.15 per month, and at the end of the four years of increase, the rate would be $29.42 a month. In comparison, the monthly rate in Santa Cruz is $38 and in Live Oak $54.38.

Because approximately 93 percent of the wastewater bill is put on the property tax bill and collected through the county, the increase would likely go into effect July 1, 2012 since property tax bills have already been collected for the 2011/12 fiscal year.

“While no increase in a fee is a good increase, over the four year period of the average home, you are looking at $4 a month more, and that is over a four year period. So it is really a dollar a year over the next four years,” Mayor Dene Bustichi said. “We are trying to take the sting out of it as much as we can.”