Commentary: The water district's inconvenient facts

By Bert Bertrando and Jack Ruskey

For over a year, we have both attended the Goleta Water District’s board meetings and we have both served as members of the district’s Citizens Water Rate Structure Committee. From our participation in the affairs of the district, we have recognized a clear need for major changes in the policies and operations of the Water District.

After reading “Overcoming Goleta’s Water Challenges,” by the GWD board’s president, Chuck Evans, in the Sept. 8 edition of the Valley Voice, we feel compelled to let the public know what was not revealed in his commentary about the operations and finances of the Water District.

First, the public should be aware that the Goleta Water District, a public, not-for-profit entity, has over $104 million worth of assets, an annual revenue of $21 million and is in debt for $59 million. It is not a sleepy mom and pop operation.

The 11 facts that should have been included in Evans’ commentary and that the public needs to know follow:

1. The district has less than $1 million dollars in cash reserves. Its outside auditors have previously suggested that the district maintain a cash reserve of $9 million to $10 million dollars.

2. At the last meeting of the district’s Finance Committee in August, its members voted to obtain a $5 million line of credit from a local bank in order for the district to be able to pay its bills in a timely manner.

3. Neither the need for taking this action nor the actual acquisition of this $5 million line of credit have been announced to the public at any meeting.

4. The district, even after eliminating some aspects of remodeling plans for the Corona Del Mar Treatment Plant in order to cut costs, is, with work ongoing, $6 million over budget.

5. At their last regular meeting, board members decided to proceed with a program leading to annual rate increases for customers of at least 5 percent per year for the next five to six years. Annual rate increases for agriculture are included in these plans.

6. In the last year, the board has raised the urban water rate more than 12 percent.

7. The district’s new water service charge, instituted in 1996, charged over $324,000 for a new, agricultural, 2-inch meter, and has prevented any new farms from being established within the Water District for the last nine years.

8. The last time the board raised rates (June 2006), it increased the agricultural users’ rate 4 percent on monthly meter charges. It also increased the cost of Ag’s new water service charge for a new, 2-inch meter to more than $334,000.

9. In the last two years, the number of local farmers purchasing water from the GWD has declined from 162 customers to 119, a decrease of over 25 percent.

10.UCSB filed a lawsuit against the Goleta Water District for the 2005 fiscal year, claiming its water rate increases were illegal. The lawsuit was settled last month and the Water District agreed to pay a refund of $105,000 to the University. The settlement also states that the provisions of the settlement re the government code restrictions on rate increases would apply to UCSB in future fiscal years, starting in 2007.

11. Because the elementary, junior high and high schools in the Goleta Water District did not join in or file a lawsuit like UCSB, the district ignored the provisions of the government code as they apply to water rate increases for public schools, and did not reduce recent increases in the rates paid by school districts.

We suggest that all interested citizens and voters attend the next Goleta Water District board meeting at 7 p.m. on Oct. 10 at the district offices, 4699 Hollister Ave., and that they bring specific questions about the above facts.

Bert Bertrando and Jack Ruskey are candidates for the two open seats on the board of directors of the Goleta Water District in the Nov. 7 election.

 

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