SAN CLEMENTE : City to Absorb Hike in Charge for Water

Despite a continuing financial slump, the city will not pass along a 23% hike in water rates levied this week by the Tri-Cities Water District, city officials said.

New revenue sources will enable the city Water and Sewer Department to absorb the entire rate increase of roughly $450,000, Greg Morehead, city utilities manager, said.

“We’ve been able to save money in other ways,” Morehead said. “Our year-end balance is enough to offset the fee increase.”

The water division has accumulated about $600,000 from penalties for excessive water use and by cutting back on water losses from sources such as leaky fire hydrants, Morehead said.

Revenue accumulated by the utilities cannot be used in the general fund to help ease the city’s budget woes, Morehead said. A revenue shortfall of about $800,000 has forced the city to increase fees for many services, such as checking development plans and renting park equipment.

Officials of the Tri-Cities Water District, which supplies water to several South County cities, said the higher cost of imported water forced them to raise rates. San Clemente is the district’s largest customer. Other customers in the district include the Capistrano Beach County Water District, portions of Dana Point, San Onofre State Park and the San Onofre Nuclear Generating Station.

Although water rates will not increase, city residents will face a 45% jump in sewer costs on Sept. 1.

Last week, the City Council approved the rate hike, which will add about $5 per month to the average bill of sewer customers. Morehead said costs associated with the completion of the city’s new sewer plant made the increase necessary.