OXNARD : Water Rate Plan Benefits Big Business

Homeowners and small businesses in Oxnard would pay more for water while large users would see their bills slashed nearly in half under new water rates to be considered today by the City Council.

The proposed new rates would help attract large industries to the city and help stop large employers from leaving, according to a report submitted by Benjamin Y. Wong, the city’s utility director.

“Staff believes that Oxnard’s water cost for high-water-use industries may in some instances already be knocking Oxnard out of the competition for attracting new industries,” Wong said in the report.

According to the study, single-family residences have received a 16% “unintended subsidy” in the actual cost of water through higher payments by large apartment houses, businesses and industries.

The new rate structure would eliminate the subsidy and create an incentive for large businesses by dropping Oxnard’s tiered rate structure--which charges more for higher water use--for all customers except single-family homes.

At the same time, the city would adopt a reduced rate for large apartments and commercial customers.

The net effect would mean modest rate increases for 25,639 of the city’s customers and significant rate reductions for 3,319 large users.

Monthly water rates would rise 1.5% for a typical single-family home, 21% for small apartment houses and between 40% and 145% for small businesses. That translates to a monthly rate increase of about 23 cents for most homeowners to between $4 and $8 for most small businesses.

Larger businesses would benefit, with the rates declining by one-third for large apartment buildings, by 40% for large businesses and 42% for large industrial firms.

Monthly savings would average $42,000 for the city’s largest industries.