75B - PUBLIC HEARING - METERED WATER RATE

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Michael and Sandy Witzigman ' 2825 Augusta Way Santa Ana, CA 92706 We are in strong opposition to the proposed water rate increase. The water rates for residents in Santa Ana have increased tremendously over the last 3 years and currently stand at $2.284/ccf for usage <44 ccf, and $2.695/ccf for usage >44 ccf (2008). That corresponds to increases of 42% and 38% respectively, since 2004. Not only is this a much greater increase than neighboring cities with similar source water and demographics, but leaves residents with some of the highest water rates in the county. According to the Municipal Water District of Orange County's most recent 2007 Retail Domestic Water Commodity Rates and Fixed Charges schedule, Santa Ana charged its residents more than any other north Orange County city for water use (and more than many south Orange County cities more dependent on outside water sources). Per the 2007 published rates, compared to its neighbors, Santa Ana charged 155% more than Orange, 53% more than Anaheim, 19% more than Garden Grove, 374% more than Tustin, and 42% more than Fountain Valley. All of these cities obtain their water from the same sources, approximately 70% from groundwater and 30% purchased from the metropolitan Water District (MWD), with the exception of Tustin which only imports 15% from MWD. However, even cities like Yorba Linda that import approximately 50% of its water still charged less than Santa Ana (which was 33% higher). Why are water rates so high in Santa Ana? A comparable city to study might be Anaheim as its 2006-2007 population of 334,425 closely mirrors Santa Ana's 2006-2007 population of 340,024. Both cities obtain water from the same sources in the same percentages, however, Santa Ana's $2.085 (<44 ccf) and $2.48 (>44 ccf) rates in 2007 were 53% and 82% higher than Anaheim's $1.36 flat rate. With the lower per capita income ($12,152 versus $18,266), Santa Ana residents are much harder pressed to afford these higher water rates. Also noteworthy is the fact that 25.3% of Santa Ana residents live below the poverty level as compared to 14.1% in Anaheim. Water, which is a basic need, should not be highest in this city where the residents can least afford it. Finally, by way of comparison, it should be noted that while Anaheim used 12% of its water funds for capital improvements, Santa Ana used only 8%. In contrast, administrative costs which were only 14% for Anaheim amounted to a staggering 29% for Santa Ana. This comparison suggests that it is administrative costs that need to be addressed, not an increase in the water rates paid by residents. Sincerely Michael Witzigman ~, ~~ v c`-i ~ r... ~ tit 75B-13