RCSD water revenues could continue decline

ROSAMOND — Rosamond Community Services District could see its water fund revenues drop to less than 50% of the target, and sewer fund revenues in a deficit by more than $2 million by 2025 if water and sewer rates remain the same.

The projections are based on a Water and Sewer Rate Study presented by RDN Consultants at Wednesday’s meeting.

Preliminary results show the need to raise water revenues by 8.75% annually for the next five years and sewer revenues by 15% the first year and 11.8% each consecutive year, according to a recap of the meeting.

The District is legally mandated to perform a rate study every five years. The study looks at current and future costs facing the District and uses economic modeling to forecast the revenue needed to operate the District for the next five years. RDN then compared those costs against current and modeled revenue and makes recommendations on ensuring the district can meet its

financial requirements over the next five years.

RDN is in the preliminary stages of developing recommendations on achieving the needed increases in revenue. Strategies include restructuring rates based on customer demand. One way to accomplish this is to simplify the current rate structure and tailor the tiers to an averaged statistical consumption.

The consultants will continue applying their expertise and experience and return with finalized reports, models and recommendations at a future Board meeting.

“This is a lot coming at us, initially. But, it’s a good start for us to move forward, and I do appreciate the effort that you and your staff have put into this.” Board President Rick Webb said to General Manager Steve Perez.

Webb added: “We know that water is going to go up, regardless of what we do or we don’t do. This has given us a good visual of why we have to try to do something.”