City proposes water rate increase
Council to hear update Tuesday
Water.
We often take it for granted. Turn on the faucet and out it comes.
But beyond
the tap lies a complex system of pipes that connects the Rathdrum Prairie aquifer to our homes and
businesses.
This
system must be maintained. And as more people move to the Coeur d’Alene, it
must also be expanded. The Water Department has updated its plan to do both.
And Tuesday, the City Council will hear that update along with proposed changes to user rates and
connection fees. The Council is expected to set an adoption and public hearing
for Jan. 2.
Nobody
likes a rate increase. But if the water
system is to be sustainable, an increase is necessary, said Water Superintendent Jim
Markley. The Department relies on user fees to fund all of its operations
and does not receive funding from taxes.
The bottom
line: Existing customers would see a modest increase of 2.50 percent starting
March 2013. That would rise to 4.90 in 2014 and hold steady each year until
2018.
“Even
with the proposed modest increases in rates and fees, we will still be one of
the lower priced water utilities in the area both in fees and in rates,”
Markley said.
A residential customer using 10,000 gallons in a
month would see
their monthly water bill increase to $14.07 in 2013 and $14.80 in 2014 when the
4.90 percent increase would take effect.
New
users would see an increase in capitalization
fees. For a residential
user, the fee would rise from $2,045 to $2,452, a $407 increase. Based on 350
to 510 new connections a year, the fee is expected to generate between $0.75
million in 2013 and $1.44 million in 2018.
The
Water Department’s Capital Improvement Plan identifies $11.5 million in project
costs over the next six years and $49.7 million over the next 20 years. Some of these projects will be funded
directly by new growth. Both the rate and fee
increases are expected to cover the city’s share of the projects identified for
construction over the next six years, Markley said.
However, rates and fees would need to be re-evaluated for projects beyond that
period, he added.
The
city’s water system is in good condition as a result “excellent maintenance
practices on the major system components,” according to JUB Engineers, which
updated the water plan. But the city will need to prepare for expansion. Based
on year-to-year growth rates, JUB predicts the system will need to expand its pumping capacity between 2026 and 2031.
Water system at a glance
- The city’s water system uses groundwater as its source.
- Nine wells are located throughout the city and deliver water to customers via the distribution system.
- The system includes eight storage tanks located on Tubbs Hill, Best Hill, Mineral Drive at Wilbur Avenue, Armstrong Park, Stanley Hill, Blackwell Hill, and at the Coeur d’Alene Industrial Park. The tanks hold approximately 9 1/2 million gallons of water.
- Combined, the wells can pump 37.4 million gallons per day.
- The system has nearly 18,000 water accounts.
