Countywide : Cities Could Share in Water Refund

Cities across the county could share in a $1.5-million refund from the Orange County Water District for a recent, unneeded rate increase, and officials said it is likely the rebate would translate into a slight savings for consumers.

The move would return money collected through a January increase in ground-water pumping fees, which the district intended to use to defray anticipated state revenue losses. Those losses did not materialize.

The district’s board of directors voted last week to move forward with a resolution that would return the money collected through the fee increase to member cities and water retailers. Those agencies, in turn, may pass along the savings to consumers.

“The board feels strongly that these now unnecessary fees should be returned to the water retailers and that they should pass the savings on to their ratepayers,” said Philip L. Anthony, president of the board.

The board will consider final approval of the resolution at its next meeting, on July 21.

But consumers may have a hard time finding their savings. Orange County Water District General Manager William Mills said the refund might amount to about $2 per household.

The district raised ground-water pumping fees twice this year to brace for expected revenue losses, with a $10-per-acre-foot increase in January followed by an $11-per-acre-foot hike this month.

The rate now stands at $88.50 per acre-foot of water. An acre-foot is about 326,000 gallons, or about double the amount used annually by an average Orange County household.

By state law, the rate cannot be changed until next year, making the refunds the only option for returning the money to customer agencies, Mills said.

The refund would send back all money collected for the January increase. If the district’s fiscal situation remains as it is today, Mills said, the district’s board next year would probably consider refunding all money collected by the increases for the remainder of this year, Mills said.

If the refund is approved July 21, money will be sent back to the 20 cities in northern and central Orange County that subscribe to the district’s services, including Anaheim, Fullerton, Garden Grove, Huntington Beach, Irvine, Orange and Santa Ana.

Water district officials said they adopted the fees to compensate for expected property tax revenue shifts by state lawmakers that would have depleted the agency’s budget by as much as $8 million. The agency, however, was spared those losses.