MMWD must assure hike secures supply
Some Marin Municipal Water District ratepayers may feel they are caught in a predictable cycle.
It has happened more than once: They dramatically cut back their use of water, most recently due to a drought, and, soon after, their rates rise because the district needs to make up for the loss of income caused by that reduction.
In recent years, orders to reduce water use have been in response to dire conditions caused by drought conditions, including 2021 when MMWD officials worried they might run out of water. MMWD ratepayers stepped up and significantly reduced their water use.
The quandary is whether we get a lot of drought-relieving rain or perilously little, MMWD's cost of delivering that water to its customers doesn't fluctuate.
It certainly doesn't fluctuate as much as rainfall in recent years.
So it comes as little surprise that MMWD directors are considering plans to raise rates.
A preliminary proposal could lift bimonthly bills by $18 for lower water users — 80% of its customers — and as much as $88 for higher consumers.
The dilemma is understandably frustrating for many ratepayers, who feel as though even after they conserve significant numbers of gallons — giving up their lawns and roses or taking shorter showers while surrounded by buckets — they are going to be asked to pay more for the water they do use.
But that pattern is only part of MMWD's financial problems. The district also has increased the amount of water it imports from Lake Sonoma and has seen inflation increase its costs for construction and supplies.
Just as important, MMWD is working on a strategy to bolster its resiliency in the face of climate changes we've seen in recent years. Both the planning and construction are going to come with significant costs that are going to have to be reflected in ratepayers' bills.
Those in charge of the district's ledgers estimate MMWD faces a $31 million annual budget shortfall, one that will grow if the district doesn't change its rates.
According to MMWD, its average bimonthly bill for a single-family
It comes as little surprise that MMWD directors are considering plans to raise rates.
home is about $138.
District directors, with three newly elected members, face some big decisions, not only how to bolster the district's supply of water, but how to meet current costs and the need for significant investments to help prevent another crisis like the one MMWD faced in 2021.
They also face the reality that water rates need to be affordable; that the district has a responsibility of providing water for local households, both the wealthy and those struggling in the face of Marin's economics.
For most tenants, it is likely their landlords will pass on any increases in the form of a rent hike.
Consideration of possible financial impacts on those households need to be addressed as the board weighs proposed increases.
Directors also face a call by MMWD employees to end the district's hiring freeze. Some areas of the district's responsibilities, such as open space rangers and not filling recent vacancies has created a staffing shortage.
While rate hikes may be inevitable, directors need to make a public case for charging more.
They need to recognize ratepayers' frustration with the conservation/rate-hike cycle, but also need to clearly outline the need to grow income.
Newcomers to the board are not getting much of a chance to ease into their new responsibilities. Rates and supply are two of the biggest issues facing the board and they are on the board's table at the same time.
Their election was in large part in response to voters' frustration in MMWD's approach, especially its need to have been better prepared in 2021. It should be interesting if they find room for change in the way the district approaches its budget and rates.