Some Southern California households would pay up to 14% more per month for water in 2009 under a plan unanimously approved Monday by a key regional water panel.
The water rate increase, driven by shortages in supplies, would vary widely depending on how much water cities and local water agencies buy from the MWD, which serves 18 million consumers in six counties.
The controversial rate hike goes before the entire Metropolitan Water District board today, with some members saying an even larger increase might be needed.
Although the 14.3% increase unanimously passed the MWD's budget committee Monday, some members voiced concern that the hike does not cover the full cost of bringing water to the region and will force them to take $117 million from shrinking reserves. Rates would have to go up 20% next year to cover expenses, said Brian G. Thomas, the agency's chief financial officer.
Board member Willard H. Murray Jr. said he plans to propose a 20% increase when the full 37-member board meets at noon today at MWD headquarters in Los Angeles.
"We should collect enough to pay for the services we provide," said Murray, who represents the Carson-based West Basin Municipal Water District. He failed in a Monday motion to force a vote on a 20% increase.
The sole member of the public to speak at Monday's meeting told the board that a 14.3% jump is too high for lower-income residents.
"We urge you to delay the decision and do an economic analysis," said Miriam Torres of the Environmental Justice Coalition for Water, who said residents do not know about the increase.
MWD is a public agency that imports water and sells it to 26 member cities and water districts across the region that use it to supplement local supplies. Its staff blames the rate increase in part on the need to buy more expensive water because of record dry weather last year, a prolonged drought in the Colorado River Basin and a court decision reducing water deliveries from Northern California.
The increase would be larger in cities such as Santa Monica and San Diego that get most of their water from MWD. It would be smaller in Riverside, much of Orange County and other areas that use mostly local groundwater.
Los Angeles residents could see their water bills rise by a total of $3.31 a month by July 2009 because of the MWD increase and two separate increases proposed by the Los Angeles Department of Water and Power.