The Crestview board is poised to adopt tomorrow (November 29) a budget for FY 2022, which begins December 1. If the proposed budget is adopted, this is how our rates will change for each 1,000 gallons of water used:
- Tier 1 increase from $3.65 to $4.00
- Tier 2 increase from $7.75 to $8.10
- Tier 3 increase from $10.80 to $15.50
In addition, the monthly allocation of water in Tier 1 and Tier 2 will be reduced from 7,000 gallons per share (the average shareholder has 3 shares) to 4,000 gallons per share–meaning everybody will get into upper rate tiers sooner. The standby charge—payable even if you use no water—will remain at $9.00 per share.
Crestview customers who use an average amount of water will see their FY22 bills go up about $100 per month (62%). Customers who use twice the average amount of water will see their bills go up about $275 per month (67%). Customers who use half the average amount of water will see an increase of $17.25 per month (22%). All these numbers are in the General Manager’s budget presentation.
Also according to the GM’s memo, in 2022 Crestview shareholders will be paying more for water than customers of every other local water supplier (except that below average water users will pay a little less than customers of Cal-American and the City of Oxnard):
These rate increases are happening because Well #4, which had been failing for several years, finally had to be taken offline in August 2021. This means Crestview is unable to pump more than half of the cheap groundwater to which we are entitled and must make up the difference by buying water imported from Northern California at 11-12 times the cost of pumping our own. The difference in water cost in 2022 will be about $600,000, and that is the reason our rates are going up. The General Manager made a written proposal to the board almost three years ago to rehabilitate Well #4, but the board did not take action. If Well #4 is back online by May 1, it is possible that these new rates could be reduced for the balance of the year. Without a rehabilitated Well #4, these new rates would have to continue through 2023 and maybe beyond.
If you want to ask the board why they neglected the Well #4 problem for three years or hear their budget discussion on November 29, you can get login information for the 4:00 p.m. Zoom meeting by emailing your request to crestviewwater@live.com
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