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Author      Title/Abstract      

Water Utility Revenues in a Post-Proposition 13 Environment
Author: Marvin W. Winer
Date: 10/78
Presented to the California-Nevada Section, AWWA Fall Conference, Los Angeles, California, October 26, 1978

The effect of Proposition 13 on the revenues of water utilities, both publicly and investor owned, has thus far been and will continue to be minimal. In the case of publicly owned water utilities, this is the result of the operation of these utilities on an enterprise basis. That is, a major portion of revenue requirements are derived from customers for service via a system of rates and charges based on the cost of providing service. This, of course, is to the credit of the water utility managers and their boards. In the case of investor-owned water companies, the effect of Proposition 13 will be a rate reduction resulting from the property tax reduction. Since property taxes are, in general, a small portion of total expenses, the rate reduction will be small.