New Post has been published on Citizensjournal.us
New Post has been published on http://citizensjournal.us/oxnard-utility-rates-to-go-sky-high/
Oxnard utility rates to go sky-high
By George Miller
For years, the Oxnard utilities staff has been warning us about shrinking water supplies, higher costs, extensive deferred maintenance, obsolescence and expanding demand for water, wastewater and stormwater services. These services are probably as important to the health and safety of residents as are the police and fire departments.
Existing Oxnard Wastewater Treatment Plant
After one year of City Manager Greg Nyhoff”s tenure and several previous reviews of the situation, we saw a major presentation on the situation at this week’s city council meeting, which included multiple solution options, schedules and estimated costs. the rate impacts are not yet calculated. In fact, a stakeholder’s committee will appointed to discuss this.
Stated purpose:
Purpose of Public Works Integrated Master Plan (PWIMP) • Develop a vision for the future: • Develop 20+ year Capital Improvement Plan (CIP) and implementation plan: • Develop the financial analysis and rate structure to support the PWIMP • Additional task: Conduct rate study
July 28 council session contents
Q.
STUDY SESSION (click to watch City Council sesion on this)
Utilities Department
1.
SUBJECT: Verbal Presentation of Utilities Rate Options. RECOMMENDATION: Receive the Report and provide staff with direction on the rate setting process. Legislative Body: CC Contact: Daniel Rydberg Phone: 385-8055
Document: Q-1 Utility Rates Study Session (pdf 3,763KB) (Download and read staff presentation)
The bill would be staggering- up to $661 million for wastewater projects and $200+ million for water. Other major public work projects beyond this scope would be streets- $100 million++; flood control- $35 million; trash and recycling- $ TBD.
Interim Utilities Director Daniel Rydberg and staff presented two alternatives each for wastewater and water- major renovations vs complete rebuilds. It was obvious that they heavily favored the compelete rebuilds, citing, reliability, replacing obsolete hardware, improving construction/servicing access, elevating structures to avoid sea surge,m storms, alleged sea rise risk.
The conservation measures imposed as a result of the severe drought of the last few years has reduced demand temporarily, taking some of the pressure off, but the long term cost of developing alternate supplies and the spiraling costs of outside purchased water will create long-term upward price pressure.
There was very little opposition to what was discussed. Long term neglect, deferred maintenance and expanding demand all mean that something will have to be done. This was an information meeting only, so no approvals or appropriations were sought (yet). However, council and staff now better know what to expect, plan and budget for. These costs will impact enterprise funds and be financed by ratepayters and bonds. Utilitity rates will necessary rise dramatically over time.
Past resident questions about why money wasn’t set aside for this have never been satisfactorily explained. One way or anoter, residents will pay, but it might have been nice to spread it over time, starting earlier and avaoiding some interest charges. The city owes over $400,000,000 now on various bonds and laons. Shrinking interst rates and strattegic refinancings have reduced finnace costs over recent years, but huge new capital expenses and likely interst rate ibcreases for historical lows wil likely change that, putting more and more pressure on city finances and ratepayers, who will have to make up the difference.
more to follow later
__________________________________________________ George Miller is Publisher of Citizensjournal.us and a “retired” operations management consultant, active in civic affairs, living in Oxnard.
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