In my last blog post, I explained why I’m concerned with the water rates charged to residents. These rates appear to be excessive, unjustified, and unsustainable and collectively represent many millions of dollars. This post explains what the City did with the money that was collected from residents.
The surplus funds have been used to subsidize two main groups. The first group is the Industrial, Commercial, Institutional and Agricultural sectors, more commonly referred to as the ICI sector. These groups pay a water rate much less than the rate paid by residents. The residential rate is $1.15 m3, while the ICI rate ranges between $0.69 & $0.92 m3. Since water is a basic life necessity, a common rate should be charged to all users since the cost of water is the same regardless of who uses it. The second group that receives a subsidy from the residential… Continue Reading