NCSD Half Truth #7: "it will only cost $8 more per month" a Second look
NCSD often makes statements like "it will only cost $8 more per month"
This is not true estimates are it will be $32-$52 bi-monthly per NCSD bill.
The News reported “The average increase in a NCSD customer’s monthly bill was previously estimated at about $12, but LeBrun said that number likely will be closer to $8.” SMT 12/18/2011
NCSD has been unwilling to provide the water rates calculation of an increase of $8 per month for NCSD’s area that the news reported. NCSD letter 11/13/11 and NCSD letter 11/14/11
NCSD has not provided a current estimate of the cost of other area water rate increases.
How can we vote without an explanation of how the estimate went from
“Based on serving 4,100 customers, bimonthly water bills would rise by … $142 for Santa Maria water ..” 12/13/07 SMT NCSD to renegotiate SM water purchase
To
"Lebrun Said that number likely will be closer to $8.” SMT 12/18/2011
As a second check look at the chart on Bi-Montly Water Bills:
That NCSD provided as a July 2011 update of the 2010 chart in the 10/12/11 NCSD Agenda Item E1 page 4
As of 7/1/11 The chart produced by NCSD shows someone in Santa Maria paying $209.45 Bi-monthly and someone in NCSD paying $105.33 Bi-monthly, for 40 CCF of water.
Santa Maria’s water system is an “Enterprise fund” where revenue must equal costs.
NCSD expects us to believe that:
Santa Maria will provide the water and intends to make an unknown amount of profit at the same time (or “revenue generation”).
Then NCSD will buy water at the tier 1 rate,
add the cost of pumping the water into the NCSD system,
add the cost of maintaining 26 million dollars of capital equipment,
add the cost of funding the replacement of the capital over about 40 years.
And it will only cost $8 a month or $16 Bi-monthly more ?
Even if NCSD gets Rural Water Company’s water for free and reduces their electric costs,
Can an NCSD customer pay $88 less ( $209.45 - ($105.33 + $16) ) then someone in Santa Maria for the exact same amount of water?
NCSD has implemented an aggressive 10% increase unrelated to the cost of Santa Maria water.
That will not fix the problem, If NCSD increases it’s rates each year $10 (10% on $100 dollars) and Santa Maria increases it’s rates each year $10 (at 5% on $200 dollars) the $100 dollar difference remains the same in the future.