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AWWA JTMGT69628
- Enacting a Major Rate Increase Using Public Outreach and Planning Transparency
- Conference Proceeding by American Water Works Association, 11/01/2009
- Publisher: AWWA
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In 2007, Las Virgenes Municipal Water District (District) of Calabasas, California, successfullyenacted major revenue increases that were phased-in over five years. Required tomaintain financial solvency during multiple capital programs, and to enhance customerequity, the District did not receive a single protest from its 21,000 water and sewer customers.Openness and transparency in the planning and review process, and publicoutreach and attentiveness to customer concerns generated understanding, appreciationand goodwill that translated into acceptance of the increases. With the last major rateupdate in 1996, the consultant-supported rate study team implemented technical rate-makingmethods proscribed in the AWWA M-1 Manual titled "Principles of Water Rates,Fees, and Charges," as well as the AWWA 2004 study titled "Avoiding Rate Shock: Makingthe Case for Water Rates."The District responded to the concerns of customers and board members alike, anddemonstrated that the right way to seek funding augmentation is to reach out to aninformed community. That successful multi-step outreach process is described in this paper. Includes figures.
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