South Pasadena City Council members will consider awarding a contract to conduct a new water rate study to find out if the revenues in the Water Revenue Fund are large enough to continue the city’s aggressive capital improvement program in light of conservation efforts.
It’s a double-edged sword, explained South Pasadena City Manager Sergio Gonzalez, saying it’s great news that residents are cutting back on their water use, however increased rates are designed to support the Water Revenue Fund, which go directly to improving the city’s infrastructure.
“When people conserve water, we have less revenues for the system,” said Gonzalez.
The water rate study is designed to evaluate the revenues that are coming into city coffers, to project the costs for future capital improvement projects and whether or not there are enough funds to sustain and address them.
“This is a study to determine the current revenues, the projected future revenues and how do we continue to address our capital needs with the fact that people are using less water,” summed up Gonzalez.