Ross Valley Sanitary District to increase rates over next 5 years

The percentage increase is averaged at 4% over the first three years, 3.8% for the fourth year and 3.5% for the fifth year.

The Ross Valley Sanitary District will increase service rates over the next five years.

The district’s board unanimously voted to raise the rates at a meeting on May 22. The percentage increase is averaged at 4% over the first three years, 3.8% for the fourth year and 3.5% for the fifth year.

In the upcoming year, the total cost for service at a single-family home in the Ross Valley is estimated at $1,238. At the end of five years, the cost will be $1,440. In the Larkspur area, the cost to homeowners is expected to be $1,773 in the upcoming year. It will be $2,061 after five years.

The last five-year rate schedule was adopted in June 2019. The new rates will go into effect on July 1.

Assistant General Manager Felicia Newhouse said the increases are based on a pay-as-you-go model for funding capital projects and general maintenance.

“I think it’s important to note that governmental services are cost-per-service based. We are not here to make a profit, we are here to make sure our service fees are commensurate with the cost of doing business,” she said.

Mark Hildebrand, a district consultant, said the district expects year-to-year cost increases of between 4% and 6% in salaries, insurance, utilities and Central Marin sanitary treatment.

“The increase is really neck and neck with a couple other districts,” Hildebrand said. “By and large, you can see the rates are comparable to the region.”

Hildebrand said the district brings in about $36.8 million in revenues, with just under $30 million of that from sewer service charges. Operating expenses are at about $27 million. The district also maintains reserve funds.

As of the current budget year, there is $10.6 million in the operations and maintenance fund; $2.1 million in the emergency reserve fund; and $5.5 million in the capital improvement reserve funds.

On average over the last five years, the district has spent $18.5 million per year on capital projects. The district projects an average of $12.9 million spent per year over the next 10 years.

Eight written protests were submitted against the rate increase, according to Andrea Clark, general counsel. A vote is allowed if the protest count is less than 50% of the total parcels in the district, which is about 1,500 parcels.

“A formal protest to the sewer service charges has not been made by the majority of parcels within the district,” Clark said.

Renu Malhotra of Fairfax said in a letter that there should be special consideration for homes with less water use.

“The increases are too steep” Malhotra said. “The total water consumption for the property is well below an average home and will translate into less wastewater going into sewage.”

Newhouse said most comments were from fixed-income ratepayers. She said the district plans to reach out to the protesters and offer information on a low-income rate assistance program, which offers 25% off the annual fee.

“That’s really the pinch point for our older residents,” she said.