“If sales go down, revenue goes down.” – in notes on last year’s Glendale Water and Power community meeting on water rationing. Along with others who attended back in May 2009, I got advance warning on this year’s proposed water rate increase.
The need to raise rates if Glendale residents cut back significantly on consumption was anticipated by Assistant General Manager Peter Kavounas at that meeting, as the notes reflect. It is only news to everyone in Glendale (including a News-Press columnist) who didn’t attend the sessions. GWP held the same meetings in other corners of Glendale to reach out to all residents. The one I attended, at Pacific Park Community Center, was a gathering of only about 15 people, which included Kavounas, GWP Manager Glenn Steiger, and at least three other GWP/city staff members.
If Glendale used too much water, it would be surcharged by the Metropolitan Water District. If a cutback in demand caused sales to fall below the break even point, the logical recourse would be to raise rates. Is this a straight Catch 22, or is there an ideal amount of water that Glendale can use to stay in the narrow comfort zone between GWP and MWD to keep its water rates steady?
The more offensive paradox was an issue that came up at the Pacific Park meeting, and at prior meetings I’ve watched or attended. Why are current residents asked to cut back on water consumption as new, dense, development projects are approved by the city? Whether these new developments are water efficient or not, this is increased water use. Another example of the delicate dance to balance revenue the city desperately needs against costs it wants to avoid.