Grover Beach city officials say an increase in water and wastewater rates is needed because the city could fall $2 million short of the necessary revenue to pay for its share of Central Coast Blue in 2024.
The City of Grover Beach recently received recommendations from a utility rate study to determine whether the city is bringing in enough revenue for the water and wastewater enterprise funds.
The study was launched due to a deficit in revenue from the existing rate structure and to find ways to cover the escalating costs associated with planned projects, like Central Coast Blue.
“Grover Beach is still in the lower ⅓ of cities for these costs, so we tried really hard to maintain that standing so that we didn’t go to the top of the heap, so we kept it as low as we possibly could,” said Mayor Karen Bright, City of Grover Beach.
The study recommends an annual water rate increase of 19.7% over the initial four years, along with a 4% increase in the fifth year.
The owner of The Spoon Trade Restaurant, Brooke Town, says she believes the city council is on the right track with the changes.
“I totally understand. As far as our city council in Grover Beach, I know they’re doing the right thing. I trust them with all my heart and soul,” Town said. “Does it affect me as a business owner? Absolutely. Everything does.”
Similar increases to wastewater rates are also proposed to determine their adequacy for financing critical sewer system upgrades.
The City of Grover Beach says these essential upgrades are needed to modernize outdated infrastructure and accommodate the community's needs, like significant street improvements, which are estimated at $2.9 million.
“In order to keep things running correctly and in order to deliver the services that our residents expect, it's just maintenance is unbelievably expensive,” Mayor Bright said.
Grover Beach resident Marcia Teresi says the changes could impact many people as prices for various items continue to increase locally.
‘’The pay rates are hard to deal with when everything is going up, so that’s definitely an issue that we have. I mean, looking at what the rates could potentially be in four years, it’s going to hurt a lot of people,” Teresi said.
Mayor Bright wants the public to know that these upcoming changes will be mailed out soon to residents in both English and Spanish.
The city council will consider adopting the new rate structure at a public hearing set for November 13, 2023.
If approved, people in Grover Beach will see a change in their water and sewage bills starting in January 2024.
Rate increases are also proposed for water and wastewater services in Pismo Beach. A public hearing there is set for October 17, 2023.
