High water mark on tap in flood of controversy in Yorba Linda Water District re basic service charge

High water mark in a flood of controversy regarding this month's increase in charges for Yorba Linda Water District customers will come at an upcoming meeting of the five elected directors.

An anticipated agenda item is a referendum petition seeking to overturn hikes in the district's basic service charge. Petitioners want directors to rescind the increase or, if they don't, set a special election for a public vote on the issue.

Rate hike opponents began circulating the petition after an earlier attempt to stop the increase failed, with 23 percent of property owners submitting protests, short of the required 50 percent, at a Sept. 17 meeting.

Final tally was 6,324 valid protests out of 27,355 parcels in the district that includes most of Yorba Linda and parts of Anaheim, Brea, Placentia and unincorporated county territory.

However, a successful referendum petition would have a lower threshold, needing just 2,157 valid signatures from the district's registered voters, based on 10 percent of 21,568 district votes cast in the November 2014 governor's contest.

While only property owners could submit valid protests before the increase was adopted, all registered voters at district addresses can sign a referendum petition. Petitions were expected to be presented this week, since the Oct. 17 deadline is Saturday.

Directors were scheduled to meet in closed-door session with legal counsel during the Oct. 8 meeting to discuss the referendum process and examine options, permitted as a response to potential litigation. Unless they took specific action, no public report is required.

Happily, the district has normalized penalties based on 30 days for billing cycles that run longer. For example, if 21 units are used during a 35-day cycle, there's no penalty. Penalties begin after the use of 18 units (13,464 gallons) in a 30-day period.

A key financial figure – the district's $32.7 million in 10 reserve categories on Aug. 31 – merits attention. That number includes $10 million budgeted for spending this fiscal year on projects related to water delivery and sewer services.

Of the remaining $22.7 million, $13.2 million currently is restricted to specific uses, including capital projects, employee liability and water/sewer emergencies. After a bond debt payment last month, less than $9 million is left for “unforeseen, unplanned and unbudgeted” expenses.

Directors can always shift reserves to other areas, but officials say the sums are needed for debt, services and to protect $789 million in assets in catastrophic emergencies. Opponents told me portions could be used to forestall higher fees in drought years.

Expect conflict to continue to the November 2016 ballot for seats held by 23-year director Mike Beverage and 11-year director Ric Collett, both unopposed in 2012. Directors Phil Hawkins, Bob Kiley and Gary Melton, first elected in 2010, were unopposed in 2014.