Editor:
I was listening in on last Tuesday’s Town Council meeting because the water and sewer rate study was on the agenda. I always wondered why as a single person household my sewer rate is so high. Turns out the proposed rates for water and sewer is set to skyrocket. Water is more understandable as a new water treatment plant construction is about to take place. Sewer rates on the other hand, is a different story.
The purpose of rate studies (taken directly from the presentation) Increase demands and costs, ensure adequate revenue generation (current operation, future operation, maintenance and capital expenses) distribute costs fairly among all customers/users, and update utility investment fee (growth pays for growth). Make sense.
What is being proposed, especially for sewer rates, doesn’t take these guiding principles into account. First off, the proposed residential sewer rates currently $57.65 is set to increase by 45 percent in 2027 to $80.94, another 25 percent in 2028 to $101.18, another 25 percent in 2029 to $126.47 and by 2031 $131.17. This is a flat rate not based on use or discharge. Here’s what is really interesting, tap fees for sewer (a gift for developers) is set to drop between 58 percent to 70 percent. Example, currently a two-inch sewer tap fee is $56,000 and will be reduced to $17,902. So the utility investment fee (growth pays for growth) is dramatically cut while existing utility users/customers see their rates get nearly tripled in the next five years. This makes no sense and seems that current users will in fact be paying for growth.
Water rates calculations are a little bit different depending on funding. With the standard debt, base rates go from current $33.77, to $35.39 in 2027, to $56.62 in 2028, to $90.60 in 2029, to $93.32 in 2030 and to $96.12 in 2031. Basically triple in the next five years. Water tap fee are set to increase, which makes sense due to a new water plant.
I know other municipalities calculate their sewer rates differently to distribute costs fairly among all customers. This can be done by bedroom/bathroom count or using a calculation based on water use. Basically the more water being used by each dwelling, the higher the sewer rate. It’s very likely that a five-bedroom house with five baths is discharging more wastewater than a one-bedroom, one-bath home. Sewer rates should reflect this, but don’t. It’s a flat rate. By 2031 a one-bedroom, one-bath home will be spending $4.37 per day for sewer. Sound outrageous? To me it does. The bigger question is why are sewer rates nearly tripling, while sewer taps fees are slashed by upwards of 70 percent. To me this proposed action by the city, for sewer tap fees is not in good faith and does not adhere to the aforementioned principles of the rate study. Why is the city so willing to cut sewer tap fees and then gouge current customers. Their own key takeaways from the study states “Continuing with the same rates does not provide sufficient revenue to sustain current operations” and “Utility investment fees should be increased to maintain growth pays for growth objectives.”
I encourage the City Council to at least maintain the existing sewer tap fee structure and not put them on such a heavy discount. Your own study states the exact opposite of what is being proposed. Why?
Dave Kozlowski
West Gunnison
Comments
No comments on this item Please log in to comment by clicking here