Small Price Seen in MWD Rate Hikes : Water: A 78% increase would mean only a few cents to a few dollars more for the average homeowner, officials say.

Metropolitan Water District officials said Thursday that a proposed rate hike of up to 78% would translate into just a few dollars a month--and in some cases only a few cents--to the average homeowner in Southern California.

But MWD directors who debated the rate proposal appeared increasingly skeptical about adopting a sizable rate increase proposed by their staff to help offset a projected $350-million deficit.

If adopted, a rate boost of 54%--the midpoint in a range of proposals being considered--would add just 25 cents to the average monthly bill to customers of the Upper San Gabriel Valley Water District, according to figures compiled by the MWD.

The biggest effect would be felt where high price tags are already commonplace: Beverly Hills, where the proposed rate hike would translate into an increase of about $5 on the average homeowner’s monthly bill. But it would also raise rates by $5 in Burbank, the figures show.

In Los Angeles, the largest single city in the MWD’s six-county service area, residential consumer bills would rise by about $2.30. In San Diego County, the largest single user of MWD water, monthly charges would increase by about $4.50 a month.

“We have a very serious financial crisis,” said budget committee chairman Carl Kymla, who represents the Municipal Water District of Orange County on the MWD board. But, he added, “It would be fiscally irresponsible” to enact a rate increase of more than about 20%.

Director Charles Stuart, who represents the West Basin Municipal Water District along the Los Angeles County coast, warned that municipal elections are planned for scores of Southland cities in the spring.

“Every one of those city councilmen are going to be running against us” as water rates will become the hot political issue of the year, said Stuart.

Kymla said directors need to take a closer look at MWD expenses--especially an ambitious $8.7-billion, 20-year building program--before approving a big rate increase. “We can’t continue to do business as usual,” said Kymla.

James Blake, who represents Fullerton on the MWD board, said a hiring and pay freeze should be investigated before a rate increase is approved.

The board is already considering increases in property taxes and a special annual charge on vacant land to boost revenues.

On Thursday, at a meeting of the board’s special budget committee, directors said they will also study the possibility of imposing charges for new water connections and seeking voter approval for bonds to fund new water treatment facilities.

An increase in rates at the MWD translates into widely varying amounts at local water agencies because they take differing amounts of their supply from the MWD. Agencies such as the Los Angeles Department of Water and Power have independent sources of water in the Owens Valley and only use the MWD as a secondary source of water. The Upper San Gabriel Valley Municipal Water District relies almost entirely on its ground-water reserves, while Beverly Hills and Burbank rely on the MWD for 100% of their water supply.

Overall, the MWD supplies about one-half of all the water consumed by 15 million residents of a region extending from San Diego to Ventura County and inland to Riverside.

About two-thirds of the MWD’s huge building program is intended to serve new development, while the remaining third will fund facilities to improve water quality for existing customers.

“We need to come to grips with the issue of equity” and decide who should pay for costs of new facilities, said Kymla, who suggested increasing the cost of bringing new lands into the MWD’s service area.

Marilyn Garcia, a representative of Los Angeles, said, “The public feels more comfortable with a meaningful correlation between who uses water and who pays.”

MWD Rate Hike Plan

The Metropolitan Water District’s staff has recommended water rate increases for its member agencies of up to 78%. The following chart shows how the effect of an increase would vary according to the amount of water purchased by an agency from the MWD. The figures are based on a rate increase of 54%--the midpoint in a range of proposals being considered by the board. LOS ANGELES COUNTY

Member % Purchased Monthly Cost Hike Agencies From MWD Average Household Beverly Hills 100% $5.00 Burbank 100% $5.00 Central Basin 36% $1.80 Compton 53% $2.65 Foothill MWD 60% $3.00 Glendale 80% $4.00 Las Virgenes 100% $5.00 Long Beach 60% $3.00 Los Angeles 46% $2.30 Pasadena 60% $3.00 San Fernando 25% $1.25 San Marino 10% $0.50 Santa Monica 50% $2.50 Three Valleys 60% $3.00 Torrance 85% $4.25 Upper San Gabriel 5% $0.25 West Basin 80% $4.00

ORANGE COUNTY

Member % Purchased Monthly Cost Hike Agencies From MWD Average Household Anaheim 30% $1.50 Coastal 98% $4.90 Fullerton 30% $1.50 Santa Ana 30% $1.50 MWD of Orange Co. 60% $3.00

RIVERSIDE COUNTY

Member % Purchased Monthly Cost Hike Agencies From MWD Average Household Eastern MWD 80% $4.00 Western MWD 24% $1.20

SAN BERNARDINO COUNTY

Member % Purchased Monthly Cost Hike Agencies From MWD Average Household Chino Basin MWD 30% $1.50

SAN DIEGO COUNTY

Member % Purchased Monthly Cost Hike Agencies From MWD Average Household San Diego CWA 90% $4.50

VENTURA COUNTY

Member % Purchased Monthly Cost Hike Agencies From MWD Average Household Calleguas MWD 76% $3.80