Mesa Water plans to raise meter and usage charges about 5% per year for 5 years

The Mesa Water District is moving ahead with a plan to increase its rates by about 5% a year for the next five years.

District board members voted unanimously Tuesday to pursue a blended approach for the increase — meaning customers would see increases both in the fixed charge they pay for their meters and the cost of the amount of water they use.

The board’s chosen tactic largely seeks to maintain the district’s practice of having roughly 80% of its revenue come from usage charges.

“The bulk of the bill that residents pay depends on their usage, so that sends a very strong financial message that if you use more, your rate goes up, but if you’re going to conserve and use less, your monthly bill will go down,” said district General Manager Paul Shoenberger.

Under the plan advanced this week, the typical consumer would see the meter charge increase by roughly 5% a year between 2018 and 2022, according to the district.

Usage charges would increase by about 3.5% in 2018, then by 5.12% to 5.18% annually until 2022 — adding up to a cumulative increase of about 5% per year.

Mesa Water’s 110,000 ratepayers in Costa Mesa, parts of Newport Beach and sections of unincorporated Orange County currently pay $3.62 per unit of potable water. One unit is equal to 748 gallons. Rates vary for recycled water.

As he did on Aug. 24 during the board’s initial discussion of a possible rate hike, Shoenberger said the primary force behind the push is a one-two punch of recent increases in water costs and falling revenue resulting from conservation efforts that began during the drought.

For instance, the price Mesa Water pays for recycled water has increased steadily in recent years and is set to go from $478.40 per acre-foot to $738 next year, district figures show.

An assessment the district pays to the Orange County Water District to pump groundwater also is going up, from $294 per acre-foot in 2015 to $445 next year. That is forecast to reach $625 by 2023, according to Mesa Water.

Though board members and staff applauded customers for conserving and helping Mesa Water meet its state-assigned water conservation target, set as high as 20% during the drought, they pointed out that those efforts meant the district was selling less water.

With sales not expected to pick up in the near future, board members said the district needs to ensure there’s enough money coming in to maintain healthy reserves and cover costs — including $36 million worth of capital projects to be done over the next five years.

“I think we’ve survived this storm; we’ve hit this point of massive commodity charges to us that we’re just going to have to pass on, by law, to keep this a functioning water district,” said board member James Fisler.

Some ratepayers, though, said they thought the district should find additional ways to pinch pennies before seeking a rate increase.

Costa Mesa resident Flo Martin pointed out that board members recently voted to increase their pay by 10%, to $264 per meeting.

“I am requesting, as a ratepayer and a consumer of water in Costa Mesa, that the board of directors also tighten your belts and lower the cost of attending meetings for the consumers of water in our city,” she said Tuesday.

Wendy Leece, a Costa Mesa resident and former City Council member, said she and other customers spent time and money to reduce their water use during the drought.

“We’ve worked hard to conserve and this is the reward we get?” she said. “You guys need to give a little here too.”

The board is expected to discuss the issue again Sept. 14. A public hearing, and a decision on the proposed rate increases, is tentatively scheduled for Nov. 9.

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