The District Board of Directors met on Tuesday, March 19, 2024, at 4:30 PM.
The Board of Directors heard updates from General Manager Pete Kampfer on the District’s current and pending projects, including analyzing current and future water needs, installation of emergency generators, Capital Improvement Projects, Pressure Plane 8 and Pressure Plane 13 storage and pumping improvements, administrative tasks related to Impact Fee roll-out, and WaterSmart marketing. Other recent projects include updating the District’s Water Master Plan, updates to the progress of a Reverse Osmosis (RO) Water Treatment Plant, and recent staff efforts in employee recruitment and training. Additionally, the District staff have been working on the roll-out of pro-rata reimbursements, analyzing current wholesale water contracts, and developing the 2023 Comprehensive Annual Financial Report.
The Board of Directors considered a presentation on a water rate increase and voted to schedule a public hearing on April 15, 2024. Since JCSUD’s last water rate increase in February 2022, inflation has continued to increase rapidly. According to the Bureau of Labor Statistics of the United States Department of Labor, the inflation rate over the past two years is 9.4%. This inflation, coupled with necessary capital improvements, creates the need for a water rate increase for JCSUD to maintain financial stability.
The draft water rate increase was based on the Water Utility Rate Study conducted by NewGen Strategies & Solutions, which provided a rate structure and methodology that would minimize increases to fixed/low-income residents, promote water conservation, and assess charges based on the financial impact on the system. The draft water rate increase is an average increase of 6.9%. In efforts to minimize increases to fixed/low-income residents and to promote water conservation, the rate increase is gradually higher through the rate tiers.
In response to the economic conditions, JCSUD has intensified its efforts toward identifying and implementing operational efficiencies and cost-saving measures. JCSUD recognizes the significance of providing sustainable and affordable water rates and is dedicated to optimizing its operations to mitigate the financial burden on its customers. The largest initiative established by JCSUD is targeting water loss as a strategic means to save costs and enhance operational efficiency. In correlation with water loss mitigation efforts, JCSUD has focused on increasing education and communication on water conservation and consumption efficiency for customers. By continuously exploring innovative solutions and streamlining processes, JCSUD aims to navigate the challenges posed by the rate increase, ensuring a reliable and economical water supply for the community it serves.