Water Rates and Seed Corn
-
Al Segalla
In the olden days, a farmer
growing corn would save a portion of the harvest as seed corn to plant next
year. He didn’t have to do this; he could eat the seed corn. But, if he ate the
seed corn, there would be no crop next year and the family would suffer.
When water systems are created,
the life expectancy of the parts is known and money is needed to be put aside
for eventual replacement or repair. The
managers don’t have to do this, but if they don’t, the customers will suffer
when expensive repairs are needed. Responsible ownership of the system requires
maintaining the important replacement reserve.
It came to pass, in Calaveras
County, that many water companies ate their seed corn and asked the county
water district (CCWD) to bail them out.
After all, the state gave the water district the power to tax all the local
people. A problem developed, when it was
discovered that the District also ate their seed corn in order to obey the many
costly and unneeded government regulations.
Some of this cost was passed to the state and federal government who had
the power to tax everybody. A new problem developed when it was discovered that
the federal and state governments also ate their seed corn resulting in a huge
spending problem.
Five years ago and periodically, the
District increased the rates to replenish the seed corn. However, they ate the
seed corn again. Now they are asking
again for another huge rate increase over the next five years to replenish the
seed corn.
The good news is that a majority
of rate payers can reject the rate increase, if they get their protest letter
to the District before July 10.
If successful, the protest could
be the beginning of reform of CCWD to increase responsibility to the rate payer
and improve management of the system.