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OPINION > LETTERS TO THE EDITOR


Letters: Water rates far exceed inflation rate
Apr 15, 2008
 By The Community

Water rates far exceed inflation rate

Dear Editor, 

After reviewing the Water Utility Enterprise Report for 2008, I was surprised to see that the cost for the South County-Coyote Valley Programs Requirements increased by 35 percent over the 2007-08 budget. There is no way that it can cost an additional $3,583,000 to manage the 17 different programs listed in this report. It appears that many of these programs have been back filled to cover the annual repayment for the CVP cost of $14,933,733.58 along with increasing the salaries and benefits.

This report states that by raising the water rates to $275 an acre foot, is only a 7.8 percent increase. Well, it's a lot higher than that when measured against the Bay Area inflation rate of 3.3 percent, as used by the Water District. It is actually 136 percent higher than the current inflation rate. In Exhibit 5 of their Operations Cost Projections, they show a 2.8 percent increase for 2009. Three of the eight line items for 2009 are Salaries, Benefits and Overhead. These three items are much higher than 2.8 percent. Since the cost of the other five items are flat to no cost at all, they tend to mask the total column projection. The true projected increase cost for salaries is 11.5 percent, benefits is 19.6 percent and for overhead is 12.2 percent. Do you know anyone receiving these kind of Salary and Benefit increases?

During my working career, I spent 36 years with Hewlett-Packard. In the year of 1972, the economic conditions were poor. We were not selling enough products to support the total business operations. So, Mr. Hewlett asked all of the employees to take a 10 percent pay cut during that year, we all did and were able to keep our jobs while working through that tough time. Today, we are all going through a rough economic time period. Many people have lost their jobs and many have lost their homes. The Water District appears to be oblivious to the tough economic conditions that we all face today. They have the ability to tax the rate payer at will to support their ever large state of employment. The Water District needs to make a permanent 15 percent reduction in the work force now.

That would reduce the current employment by 120 and have an annual savings of $15,600,000. This does not mean eliminating job vacancies that have never been filled. This reduction is for people that are currently employed with the Water District.

In a recent newspaper article, Chairman Kamei stated that she welcomes ideas people have to keep prices low. She also said that for the first time in a long time, the board is looking at cutting costs in one place the community won't mind, they're looking at eliminating top level positions. About three years ago, I was before the Board of Directors with a suggestion on reducing some management positions. The response from the Board Chairman at that time was, thank you for your ideas, but we need ideas on how we can make money.

In a letter to the Board Members, that is at the front of the 2008 Report, by the current CEO, as stated in her closing paragraph, "We also need to continue to maximize efficiencies in management of water, financial and human resources, in our quest to operate and maintain a sustainable Water Utility Enterprise for many decades ahead." I agree 100 percent with these thoughts. Now is the time to bite the bullet and put a meaningful plan into action. Something that all ratepayers will see, starting with the 2008-09 proposed budget.  

Robert J. Cerruti, San Martin


The Community
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