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YLWD Constant Massive Rate Increases
Opinion
How rich do you want Yorba Linda Water District (YLWD) to be?
This Thursday the YLWD Board is likely to approve a new Rate Study to legally justify even higher rate increases. The 2021 Rate Study, which is good through 2025, allowed for 9.9% annual increases on water and 15.0% increases in sewer charges.
Since 2021, 50% Rate Increases
Since 2021 the YLWD Board has approved the maximum increase in each year resulting in total increases of over 50%. In addition, the YLWD Board approved a property tax of over $135/year that is collected by the county to pay for water capital improvements. This property tax has collected close to $2 million each year. This is on top of borrowing $35 million for other projects.
Massive Rate Increases.. and Not Enough!
Over the last 3 years YLWD has collected revenue of over $124 million, an average of $41 million per year. This compares to just $34 million in 2019 and $36.6 million in 2020. Has your water service improved by 121%? In each of the next 3 years YLWD expects to collect almost $48 million/year, and yet they need a new rate study and even higher rates?
During each of the first 3 years of the 2021 Rate Study, the District expected $19.9 million in Net Income (Revenue minus Operating Expenses) and came in at $19.3 million. And now that’s not enough?
June 2023, $46 Million in Reserves
To be fair, power costs are up and water costs are up slightly. However, in the big picture that’s a drop in the bucket. Total costs to buy water, pump it and treat it have gone from $13 million in 2020 to $15 million in 2023 (about 5% a year). Total operating costs run about $35 million a year so the direct “water related” expenses represent about 43% of expenses.
First bucket for the extra money, Reserves. In 2020 reserves were about $37 million. As of June 2023 they are $46 million a whopping increase of 124%.
Salary Increases Expected
The new employee salary increases effective October 1 haven’t been released but expect increases of double digits. In a clear case of muddying the waters, the District has released the new salary schedules but not the actual dollars and cents that are going to the increases. In defense of most the YLWD employees, they earn their pay.
Supplies and Services.. $9 Million?
“Supplies and Services” are mostly discretionary items for the District. This category has gone from $4.1 million in 2019 to $7 million in 2023 and is budgeted for over $9 million next year. In just 5 short years this category has more than doubled, a 221% increase.
YLWD isn’t really in the business of pumping water, they are pumping a gusher of cash coming directly out of your pocket.
YLWD- Dollar and Diming You
YLWD Directors Brett Barbre, Phil Hawkins, Tom Lindsey and Trudi DesRoches have voted for every one of these increases and you can expect them to vote for a new Rate Study for even bigger increases. This Board expects to dollar and dime you on rate increases because you’ve got bigger issues in your life.
If you don’t want to see that happen, let these people know.
Brett Barbre, directorbarbre@ylwd.com
Phil Hawkins, phawkins@ylwd.com
Tom Lindsey, tlindsey@ylwd.com
Trudi DesRoches, tdesroches@ylwd.com
Wayne Miller, jwmiller@ylwd.com
Al Nederhood
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View the Agenda
https://yorbalindawdca.portal.civicclerk.com/event/365/files
Editor's Note: Two seats will be open at the YLWD in November 2024
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