From the Ouray News (Patrick Davarn):
The Town of Ridgway is proposing an increase to the monthly base rates by $5 for water and $7 for sewer, each year over three years. The hike will take Ridgway’s base water rate from $22 to $37 by 2012, and the sewer rate from $18 to $39…
Public Works Director Joanne Fagan explained that an Enterprise Fund must be run like a business, its revenues sufficient to pay expenditures. “It should not be running at a loss,” said Fagan. “When we apply for (capital project) grants, they look to see if we are at least sustaining. Neither fund, water or sewer are right now.” Fagan showed the town’s current budget of operating revenue and expenses to start Council’s discussion of the draft ordinance to change water and sewer rates. The Water Fund is estimated at $234,700 in operating revenue from 571 customers with operating expenses of $325,632 including debt service, and operating expenditures of $276,133 without the debt service. Debt or not, the projecting indicates a net loss. Fagan’s budget projections for the Sewer Fund are more ominous. Operating revenues for 2009 are estimated $181,700 as compared to operating expense of $269,184 without the debt and $342,000 including the service.
More infrastructure coverage here.