Joan Girardot and Steve Lawrence: Fight the Unfair Family Tax

The San Francisco's Public Utilities Commission (PUC) is expected to adopt new two-year water and sewer rate increases in June.

They will also impose a new "tiered rate structure" on water rates for single-family residences. A tiered structure for sewer charges was adopted two years ago.

Once these proposed rate increases are approved by the PUC, sewer rates will have risen on average over 68 percent in five years.

A 30-year Sewer Master Plan, which is in the planning stages, will cost ratepayers more than $2 billion.

Water rates are just beginning to rise to fund a $4.3 billion capital program to be completed in 2015. It is important to focus on the rate structure now, before rates go higher.

The PUC can raise rates on their own because it is not regulated by the state.

A "tiered rate structure," also known as an "inclining block rate structure," requires a residential ratepayer to pay more money for additional units of water and sewer used, but also pays at a higher rate. Not only does the ratepayer's bill increase with increasing unit consumption (uniform volume rate), but the unit cost of water/sewer increases as well (tiered rates).

Here is another way to look at it.

Suppose there are three single-family households. The first household consists of one person who requires one loaf of bread per week, and pays $1 for the loaf. The second household consists of four persons, requires four loaves of bread per week, and pays $1 for the first, $2 each for the second and third, and $4 for the fourth loaf. At a uniform volume rate, the household of four persons would pay $4 for its four loaves of bread. Under a "tiered rate structure" this household would end up paying $9 for its four loaves.

Why is the City proposing a "tiered rate structure?" They like to call it a "conservation rate" that will promote conservation through pricing, but it is only targeted at single-family residences.

The City admits that the traditional uniform volume rate structure provides a conservation incentive by increasing the ratepayer's bill with increasing water use, but contends that the "tiered rate structure" provides a stronger conservation incentive than does the uniform volume charge because not only does the ratepayer's bill increase with increasing use, but the unit cost of water increases as well.

The core issue is that households with families (and even with extended families) will be paying higher rates because they are larger. Even if they use the same amount of water per person as smaller households, they will pay at higher rates. This is nothing more than a regressive tax being imposed on families.

In addition, the "tiered rate structure" for water targets only single-family dwellings. Most of San Francisco's residents live in multi-family housing without meters for individual units.

Single family dwellings use only one-fifth of the water consumed in the City.

This "conservation rate" targets one class of water user and ignores the majority.

Rather than impose a regressive tax on San Francisco families, the PUC should sell less water to suburban customers. The PUC is proposing to guarantee more water to our suburban customers, and at the same time trying to accommodate more growth and development in the City, while asking San Franciscans to conserve.

The "tiered rate structure" must be rejected by the SF Board of Supervisors. It is arbitrary, discriminatory, and unfair to families. The family of four uses no more water and sewer per person than the household of one, but it pays at a much higher rate.

Every household in San Francisco, whether large or small, owner or tenant, can be encouraged to cut its water and sewer use. But putting the burden of conservation on families, by targeting them with punitive pricing, is unfair.

The Board of Supervisors is scheduled to hear this item in committee on June 4 and the full board could take the matter up as soon as June 5. Call your Supervisor and let him or her know that this family tax is unacceptable and contrary to the future of our City - a city that is losing more and more families every day.

Joan Girardot is the past president of the Coalition for San Francisco Neighborhoods and Steve Lawrence is vice-chair of the PUC's Citizens Advisory Committee. This column first appeared in the SF Examiner.