RETIREMENT BENEFITS STRAINING TWENTYNINE PALMS WATER DISTRICT FINANCES

Rate increases at the Twentynine Palms Water District were the topic of discussion at last night’s meeting of the Board of Directors. Water rates have not increased since 2011, and the water district does not charge ratepayers enough to fully cover the cost of its retiree health benefits and California Public Employee Retirement benefits. Board members discussed three options for rate increases for five years: a 3 percent increase with no funding of retirement benefits, which would result in the district being out of cash in 10 years; a 3 percent rate increase that would go toward satisfying the district’s retirement fund, which would result in the district being out of cash in less than seven years; and a 5 3/4 percent increase and funding retirement benefits, which would also result in the district being out of cash in less than seven years. The directors continued the discussion to its January meeting. The Board of Directors also decided to terminate a 23-year agreement it had with the City of Twentynine Palms that gave the city free water in exchange for encroachment permits.