SAN DIEGO -- More money for less water seems to be a reality for customers in San Diego County nowadays.

That includes Padre Dam Municipal Water District -- which serves about 100,000 East County residents.

"I believe they could do a lot better," said Norma Draney, a Padre Dam Municipal Water District ratepayer.

Customers have complained to the 10News I-Team about how the agency is spending their money.

"We’ve been asked to conserve, yet there is no conservation on their part," said Kathy Delaney, a Padre Dam customer and former employee.

At the heart of the problem is an unusual five-year plan that raises water and sewer rates at least six percent every year. That's on top of the rate hikes due to the drought.

According to Padre Dam, this five-year rate hike plan was a first. It was implemented in 2007 as a way to fund neglected infrastructure projects. When it was passed, no one knew a recession and a drought were coming.

"I don't think how they're operating is proper, especially in this economic crisis," said Draney.

For example, budgeted salaries and wages increase every year, according to the district's five-year plan. In the administrative department alone it goes up 62 percent.

"How can you justify giving yourselves increases while everyone else is not receiving an increase, but getting a reduction, or being laid off?" asked Draney.

Other charges further increase customers’ bills. For example, when users conserve, less water means less revenue. So Padre Dam makes up the difference by raising service fees, according to a notice sent to customers.

"It's an unfortunate alignment that's going on, but our costs are fixed," said Padre Dam general manager Doug Wilson.

Although some operating costs are fixed, the I-Team questioned spending that is within the district’s control. A public records request revealed an increase in those areas.

Expenses -- such as conferences and meetings -- for Padre Dam's five Board of Director members were about $33,000 in 2006. In 2007, it jumped to $58,000. In 2008, it grew to $71,000. That’s a 118 percent increase.

"We have a board that cares about what's happening to the customer. As a result, they are involved in more meetings, more committee meetings," said Wilson.

On the other hand, Otay Water District also has five board members, but spent about $63,000 less for expenses over the past two years.

The I-Team also found the general manager's expenses climbed from $718 in 2006, to $2,800 in 2007, to over $5,000 last year. Wilson said that’s comparable to past general managers.

"I believe that people should hold agencies accountable. Especially if they're a public agency, they should hold them accountable for how they're spending the money and what they're spending it on," said Delaney.

Delaney retired after 36 years as a Padre Dam employee. As a customer now, she’s holding the agency accountable.

"You could still continue to fix the infrastructure, but you could hold the line on some of these things that are going on there," she said.

If a water district wants to approve multi-year rate hikes like Padre Dam, Californians have a right to protest under the provisions of Prop 218. Multi-year increases are easier on the water districts, but are not necessarily in the customers' best interest.

If the majority of customers protest a rate increase in writing before it's approved, that rate increase cannot be implemented.