Lathrop residents could be getting a break on the annual water rate increases this year thanks to the lifting of drought restrictions and an abundance of development.
While a monthly increase of $8 was set to go into effect in January – already approved by the Lathrop City Council as part of a 5-year plan – staff is requesting that the city postpone the increase because the water fund is outperforming its initial projections. The proposal correlates to hundreds of thousands of dollars in savings to ratepayers.
If approved, it will be the first time since 2016 that there was not an annual water rate increase – the first decline in monthly and annual expenses since the rate study was approved.
The council will consider the postponement tonight when they meet at 7 p.m. in the council chambers at Lathrop City Hall – located at 390 Towne Centre Drive.
According to the staff report prepared for the item, staff conducted an annual review in 2018 that determined that the sewer fund, which will see an increase of $4 a month this year in accordance with the study for residents in East Lathrop, and $5 a month for residents of West Lathrop, was performing slightly below the rate study’s projection but still within a sustainable range. The water rate portion of the study, however, was outperforming the projections due to the lifting of drought restrictions – the mandatory conservation forced residents to use less water and therefore generated less revenue to service the debt on the city’s water bonds – and an influx of development.
But the temporary halt to increases are not an indication of an ongoing cost reduction to residents. According to the staff report, the reimplementation of water conservation measures could force revenues to once again drastically decline and prompt an increase to offset those shortfalls so that Lathrop can continue to meet its debt obligations. Other factors, like the implementation of sustainable groundwater legislation that could limit the amount of water that Lathrop pumps from wells, tighter standards for contaminants, or new regulations for hazardous materials disposal stemming from water – like arsenic – could also drive up the cost for the city and, ultimately, the residents that fund the system.
California’s current water storage picture – which can indicate whether a drought is on the horizon – shows good news for Northern California. The two largest reservoirs near San Joaquin County – New Melones and Don Pedro – are both above their historical averages for this time of the year, and the state’s largest reservoir, Lake Shasta, is at 82 percent of its historical average with months of rain and snowfall left to go.
For additional information about what the council will be discussing, or to obtain a copy of the agenda, visit the City of Lathrop’s website at www.ci.lathrop.ca.us.
To contact reporter Jason Campbell email jcampbell@mantecabulletin.com or call 209.249.3544.
