– By Robert Gilchrist Huenemann, Hollister
On June 25, the San Benito County Water District board voted to approve the 2014-2015 district budget. Thanks to the drought, there is a budget deficit. On July 7, the board will
hold a special meeting to consider defaulting on the $100 million loan from the federal government that paid for the zone 6 “blue valve” pipes,pumps, etc. Here are some facts that deserve public attention:
- Agribusiness uses 80 percent of San Benito County water.
- Urban water users pay 38 percent more for “blue valve” water than agribusiness.
- Urban water users pay seven times as much for well water than agribusiness.
- The City of Hollister, Sunnyslope and private mutual water companies pay SBCWD for using water from their own wells.
- Urban water users pay 86 percent of the $5.6 million SBCWD property tax. Agribusiness pays $800,000, or 14 percent.
Agribusiness property changes hands when someone dies.Corporate agribusiness property never changes hands. Think Meyer Tomato, Christopher Ranch, T&A, etc. Thanks to Prop. 13, agribusiness property has extremely low assessed values and low taxes.
What could SBCWD do to offset the deficit? Raise the agribusiness well water fee. But three of the five board members own or manage large agribusinesses. It’s not hard to understand why they continue to sell themselves cheap water. Why do the other two SBCWD board members (Bettencourt and Flores) vote in favor of every increase in urban water costs?
There is no end to the list of new projects SBCWD is cooking up to tap your wallet.
The 800 pound gorilla in the room is the $100 million federal loan. SBCWD has been paying $1.4 million a year in principal and interest. But starting in 2017, a series of “balloon” payments come due. Do you think your water and tax bills are high now? Be prepared to watch them skyrocket, while agribusiness continues to get dirt cheap water.