The Bee's recent coverage and editorial regarding the Sacramento Regional County Sanitation District's current study of wastewater rates and fees point to concerns about how our region's future wastewater treatment rates and fees are set, and how they will affect residential ratepayers and new development. Setting the methodologies for long-term rates and fees is complex and is subject to a number of variables, including the rate of growth in the region. However, it must be understood that monthly rates paid by existing customers and one-time impact fees paid by development are closely related to one another. This concept is not adequately addressed in The Bee's coverage, and it reflects a critical gap in the collective understanding that we need to have concerning this issue.

Simply put, if no new growth occurred in our region, residential monthly rates would be even higher than the $68 in 2020 that The Bee mentions, because residential rates would serve as a backstop to a lack of new connection revenue. In that way, existing ratepayers and new development are joined at the hip. The economic vitality of the region has a direct connection to monthly ratepayers' bills.

The sanitation district is stepping through a very deliberative and careful process in reviewing the most feasible and sustainable options for moving forward on rates and fees. To that end, in 2009 the district commissioned a technical review committee made up of stakeholders including residential ratepayers, taxpayer advocates, industry and commercial representatives, local jurisdictions, environmental groups, developers and builders, and more. This group has met regularly and has become educated in a wide range of issues. It is providing valuable feedback to the sanitation district. That process will continue during 2012.

The need to fund the state-mandated improvements to the region's wastewater treatment process is real. We must develop a sustainable financing plan to accomplish that – a plan that is less dependent on the prior decade's unprecedented housing boom and the robust revenues from new connections to the system. On the other hand, we need to strike a balance that does not unfairly burden residential ratepayers. The sanitation district is acutely focused on this goal, and we will continue to work closely with our stakeholder groups and board of directors in setting a path forward that recognizes the interdependencies of all our customer classes.

© Copyright The Sacramento Bee. All rights reserved.

Stan Dean, the district engineer for the Sacramento Regional County Sanitation District, is responding to the Dec. 20 editorial "Sanitation district needs to spread rate hikes evenly." The editorial stated: "Before the sanitation district board picks a formula to set long-term rates, it should actively seek out and listen to homeowners."

• Read more articles by Stan Dean