ENCINITAS: Leucadia Wastewater District customers may see rate hike

By RUTH MARVIN WEBSTER - Staff Writer | Tuesday, July 8, 2008 6:25 PM PDT ∞

ENCINITAS ---- In addition to rising food and gas prices, customers of the Leucadia Wastewater District can add sewer rates to the list of necessities that are likely to get more expensive this year.

The district board Wednesday will consider a proposed three-year, 10 percent rate hike for sewer customers. The increase would cost a typical residential homeowner about $20 more when sewer bills arrive in October, bringing an average bill to about $213.

If approved, the rate increase would be assessed retroactively to July 1.

District General Manager Paul Bushee said Monday that the increase is needed to ensure a healthy financial future for the district.

"Basically, we did a financial plan update that was adopted in June," Bushee said. "We looked out over 20 years for operating and capital expenses and we need to meet the obligations not only of today, but of tomorrow."

He said that aging pipelines at five of the district's 11 pump stations need to be replaced ---- a project that could cost as much as $5 million. The exact amount won't be known until the work goes out for bid in late summer or early fall, he added.

The stations use pumps and other equipment to transport sewage to a wastewater treatment facility, where it is processed for use in irrigation or put out to sea.

While those pipeline projects are already funded by current reserves, Bushee said, the proposed rate increase would cover operating and capital costs projected far into the future.

Bushee said this would be the district's first rate hike in the last five years and that even with the increase the district would still have one of the lower sewer rates in the area.

"If the board approves this rate, our rate for 2009 will be equivalent to our rate from 1993," he said, noting that the district's rate for three years (in 2000, 2001 and 2002) was actually reduced.

The district sent out written notifications of the proposed rate increase to customers in May. Bushee said the office had received five letters of protest and one of support so far.

The Leucadia Wastewater District covers about 27,500 homes in La Costa, Olivenhain, Village Park and the eastern side of the city of Encinitas down to Santa Fe Drive.

Single-family homes, without a separate guest house or unit, generally represent a single "equivalent dwelling unit" for the purposes of the district's fees.

Some businesses and restaurants may be assigned more than one equivalent dwelling unit.

The other areas of Encinitas are serviced by the Cardiff and Encinitas sanitary divisions of the San Dieguito Water District. Customers in those divisions will see increases in their sewer rates of roughly 3 percent each year through 2013, according to a plan approved by the San Dieguito district in May.

Those fees are set to rise by 2.9 percent ---- or about $14.91 ---- in the current fiscal year that started July 1. By July 2011, their fees will go up by $19.17, or about 3.5 percent.

The Leucadia Wastewater District's board is expected to vote on the proposed rate hike during a public meeting at 5 p.m. Wednesday at the district's offices, at 1960 La Costa Ave., Carlsbad.

Contact staff writer Ruth Marvin Webster at (760) 901-4074 or rwebster@nctimes.com.