League of Women Voters of California Education Fund
Alameda County, CA November 4, 2014 Election
	Eric Tsai Answers Questions Candidate for Director; Alameda County Water District

The questions were prepared by the League of Women Voters of Fremont, Newark, and Union City and asked of all candidates for this office.
Read the answers from all candidates (who have responded).

Questions & Answers

1. Why have water rates gone up and up?

Our water rates have increased for at least 15 consecutive years. The last 10 years of rate increases have averaged 8% each year. If you live in an apartment or own a business property, ACWD has raised your waters rates by 21% this year alone.

ACWD was founded for the benefit of the public, but these excessive rate increases that far surpass inflation have not benefited our community, especially the poor and seniors living on fixed income.

Our water rates continue to rise because ACWD spends more each year than it takes in, and all it takes is a simple majority vote by the Board of Directors to raise rates.

When other local government agencies want to raise revenue, they have to get at least majority voter approval at the ballot box. For instance, when a school district wants to issue a bond, they need at least 55% voter approval. This process ensures there is widespread debate on the issues and holds the school district accountable. However, when ACWD wants to raise revenue, all it takes is 3 votes by Directors without much public debate. This creates a culture of complacency to raise revenue rather than control expenses to balance the budget. If ACWD had to get approval at the ballot box every year to raise revenue, do you think they would ask voters to approve raising water rates by 21% on those living in apartments? Because ACWD does not need voter approval to raise revenue, it is extremely important that the Board has Directors who will focus on fiscally responsibility.

Water costs have been rising throughout the years, which has contributed to rising water rates. In the last 9 years, water costs have increased 124%. However, the fastest growing expense category during the last 9 years is Administration and General expenses. Administrative expenses have increased 220% in 9 years. In just the last 2 years, administrative expenses have increased 94%.

Spending must always be prioritized to maintain a safe and reliable water supply. However, there is a lot of wasteful spending that does not lead to one drop of water. For instance, ACWD will spend $279,000 to write ACWD history books to celebrate their 100th year anniversary. This spending is irresponsible during normal times and outrageous during this drought. ACWD budgeted $300,000 for travel and subscriptions and nearly $600,000 to renovate their headquarters for next year. Some or most of these spending can easily be redirected towards maintaining our water supply.

In March 2014, ACWD declared a water shortage emergency. During emergencies, everyone must share in the sacrifice. Ratepayers are asked to conserve water by 20% and our water rates have increased twice this year. However, there has been no shared sacrifice by ACWD employees. At the very least, management pay raises scheduled through 2017 should be frozen when a water shortage emergency is declared. Ratepayers, especially low income households and seniors living on fixed income, cannot and should not bear the full brunt of an emergency.

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Responses to questions asked of each candidate are reproduced as submitted to the League.  Candidates' statements are presented as submitted. References to opponents are not permitted.

Read the answers from all candidates (who have responded).

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Created from information supplied by the candidate: October 10, 2014 15:04
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