Good morning. I have attached a "Letter to the Public" concerning the upcoming Protest Ballot matters concerning the increase in water rates. On behalf of the City Council it would be appreciated if you could place this in your upcoming edition.

While we would like to see it afforded the same level of newsworthiness as you have given others by placing it on the front page, we will leave the placement of this item to your discretion. Thank you, Patti Walker, Mayor
In 2002, the City refinanced the 1989 $8,000,000 water bonds to fund various water system improvements. In 2006, it was understood rates would increase 25% but were only raised 10%. The decision to reduce the increase was due to the fact the Council had to raise sewer rates to cover costs for the new water recycling plant and they did not want to further burden the citizens.

The bad news is two-fold: the current rate doesn’t cover the 2002 debt and with a modest increase in rates there will not be money in the Fund to cover maintenance of the water system.

Currently the City pays for street sweeping and without taking further cuts to the budget there isn’t money in the General Fund to continue this practice. The citizens are being asked to pay up to $1.20 a month on the bill they receive from Harrison (the trash hauler) to cover this cost.

During the budget process, the Council determined it was necessary to raise the water rates approximately $1.70 a month beginning October 15, 2010. The rate would increase an additional $1.80 in January 2011 and then another $1.90 in January 2012. For the years 2013, 2014 and 2015, additional increases will be 2% plus the CPI (currently at 2%). These increases would only cover the debt, utility and pumping increases, as well as the street sweeping costs. The staff did not recommend any increase to cover the maintenance costs.

We are hearing from staff that important maintenance costs have been deferred for several years and we will be faced with $720,000 a year in maintenance costs to the water system. This Council recognized their responsibility to safeguard the city’s water system. To defer maintenance always costs more in the end. If an emergency situation occurred at any of the wells or in the city’s water lines, there will not be sufficient money to cover those costs. The Council believes that inadequate funding will be setting us up for future failure. It would be irresponsible not to provide a funding mechanism to maintain the water system.

After a long and thoughtful discussion, the Council determined that by increasing the rates an additional $1.70, there would be sufficient income to provide funding for proper maintenance of the system.

You, the property owners, get to vote whether or not you are willing to pay the additional $3.40 or so a month more for your water service. This additional $3.40 will cover the payment on the debt, street sweeping charges, increase in utility costs and provide sufficient maintenance income.

In the next few days Fillmore property owners will receive a ballot allowing you to vote on the increases. On August 24, the Council will be holding a public hearing on the increases and written ballots will be due and tallied at the September 14 Council meeting.

If you have any questions, please do not hesitate to contact your Council Members. We are here to respond to your needs.