Stockton Water Rates Going Up 43.7 Percent Over Next Five Years
STOCKTON (CBS13) — City leaders in Stockton voted to increase water rates by nearly 40 percent over the next five years.
The move comes after the utilities department reported a revenue shortfall of roughly $6 million dollars.
"Government needs to live within its means," said one man speaking in opposition to the rate hike.
The voices against raising the rates were loud.
"It seems like the overall impression to me is that the people don't want it," said another man addressing the council.
But there weren't enough.
21,000 people were needed to oppose the measure, only a few hundred sent in the official protest card. The motion to increase water rates passed.
"Tax the people, tax the people, tax the people. How about spending less," said Stockton Mayor Anthony Silva, who opposed raising the rates.
Silva says he can't support asking the people to come up with the cash to keep the Municipal Utilities department running.
"As the mayor of Stockton, I have to look out for my residents and my residents can't afford any more tax increases right now."
Had the measure not passed, the city could be facing a familiar scenario they don't want to revisit. Defaulting on loans.
"We will not meet our debt coverage ratios without this rate increase," said Deputy City Manager Scott Carney.
Stockton water users will now pay 18.5 percent more beginning August 1. The following year, an added 11 percent, then an added 3 percent for each of the next three years for a total of 43.7 percent.
"This is the only option because the only revenue we generate for the utility comes from rates," said Robert Grandberg, the acting Utilities Director.
He says they underestimated the people of Stockton, who reduced water usage by 26%.
"I don't think anyone saw this level of conservation come around starting in 2014 and in to 2015," said Grandberg.
Now, a $6 million dollar revenue shortfall.
"We've done what we can to keep increases as low as possible," says Grandberg.
He says they've froze jobs and reallocated purchased water.
"It comes at a cost and our rate payers have to pay that cost."
Mayor Silva disagrees. He says more should have been done on the front end to anticipate the lack of revenue. And use other avenues to generate money.
"We need to create a reason for people to come to Stockton and spend their money here at our hotels and restaurants," said Silva, "that's what we need to do."
