San Juan Bautista residents will see a significant increase in
their water and sewer rates beginning this month, however that hike
allowed city council members to adopt a balanced budget after
passing one $90,000 in the red last year.
San Juan Bautista – San Juan Bautista residents will see a significant increase in their water and sewer rates beginning this month, however that hike allowed city council members to adopt a balanced budget after passing one $90,000 in the red last year.
Council members unanimously adopted the 2005-2006 budget last week, and were able to bring in about $370,000 in additional projected revenue, according to the adopted budget. The extra money comes mostly from the first raise in water and sewer rates in seven years, which the council approved in June and will go into effect Sept. 1, according to Vice-Mayor Charles Geiger.
“(The water and sewer rates) are the big factors, because it was taking $260,000 out of the general fund last year,” Geiger said. “Nobody wants to raise the rates, but this way we can pay for our services.”
San Juan kicks this fiscal year off with an approximately $1.1 million general fund budget, the bulk of which will be spent on general administration such as personnel, general maintenance and repair and capital expenditures, according to the budget. Another large chunk will go toward the city’s public works department, the volunteer fire department and its contract with the San Benito County Sheriff’s Department for public safety, according to the budget.
Other than the nearly $8 million water and sewer upgrade project city leaders are focused on implementing, City Manager Jennifer Coile said important projects this fiscal year include possible renovations to the Community Center paid for with a state parks grant and a historic resource inventory funded by another state grant.
While Coile, who took over as city manager several months ago, said the budget process was “blissfully easy,” thanks to help from the city accountant, it was a big change from last year’s deficit budget.
After beginning the last fiscal year $90,000 in the red, this is the first year that the council won’t have to borrow from the general fund to pay off a deficit in the its water and sewer funds, Geiger said.
The city has lost about $1 million in revenues since 1997 because it covered the increasing cost of water and sewer services by taking money out of the general fund, Geiger said. Last year, the city lost nearly $260,000 because the amount of money coming in from water and sewer rates far exceeded the city’s expenditures, according to this year’s budget.
But thanks to the hike in rates, the city will receive about $170,000 more in water revenues, and an additional $200,000 from the increased sewer rates this year, according to the budget.
“We can use the general fund to do things that haven’t been done in San Juan,” Geiger said. “Past council’s were using money to pay off those two funds (water and sewer). I’m hoping now we’ll be able to have some money to have some visual improvements that people can see.”
Currently, San Juan residents pay $8 for the first 4,000 gallons of water and $1 for every additional 1,000 gallons after that, Geiger said. The new plan would increase the base rate to $16 for the first 3,000 gallons, $2 for every 1,000 gallons from 3,000 to 8,000 gallons, and $3 per every thousand gallons over 8,000, Geiger said.
The average resident uses between 5,000 to 6,000 gallons of water every month, which means instead of paying between $8 to $10 a month, their bill will jump to $20 to $22 a month, Geiger said. Sewer rates will also be increased from a base charge of $33.75 to $54 a month.
While council members spent hours last year during their budget meeting peppering former City Manager Larry Cain with questions and bickering back and forth over specific line items, Geiger said this year was much more organized and the council adopted the budget quickly.
Two council members, Geiger and Mayor Arturo Medina, did not vote to approve the deficit budget last year, which barely passed with the 3-2 vote.
Medina said this year’s budget talks went much smoother, thanks largely to Coile’s work and having the money available to balance the budget.
“There might be a little tweaking later,” Medina said, “but the city manager and city accountant were able to work out a good budget.”
While public safety issues and matters surrounding the city’s historical district are always priorities in the Mission City, Medina said city leaders are mostly focused on a $3.8 million water and sewer grant currently hanging in the balance.
The grant money, awarded to the city by the federal government, is part of a more than $7 million infrastructure project that would overhaul the city’s dilapidated water and sewer systems. However, the city and the San Benito County Water District are co-grantees of the grant and cannot come to an agreement over contract details.
The city could lose the grant if San Juan leaders cannot come to some type of agreement with water district officials, causing representatives with the Economic Development Administration to pull the grant.
Erin Musgrave covers public safety for the Free Lance. Reach her at 637-5566, ext. 336 or [email protected].
