From The Pueblo Chieftain (Chris Woodka):
Pueblo Water’s role as a water broker has kept customers’ rates the lowest among major Front Range cities.
In next year’s $35.9 million budget, about $8.9 million of $33.1 million in operating revenue will be generated from raw water leases, according to projections studied this week at a workshop with the Pueblo Board of Water Works.
“It’s becoming a greater percentage of the budget,” said Seth Clayton, director of administrative services.
That, along with deeper spending of reserves, is keeping Pueblo water rates the lowest among major Colorado cities.
Water rates are on course to increase 3.25 percent next year, and the decision will be finalized after a public hearing at 2 p.m. Nov. 18. The increase will amount to about $1 per month in the typical bill.
Even with that, Pueblo’s rates will remain less than half of Colorado Springs or Aurora, and lower than Denver, the only large city that comes close to the level.
At the same time, Pueblo customers have reduced average household consumption to an average 114,400 gallons per year in 2014, about 20 percent less than in 2005. Part of the decrease was due to a rainy summer, but Clayton noted there is a declining trend to water usage that has continued since the drought of 2002.
Next year’s budget assumes a slight increase in usage, with an average of 117,000 gallons per household. A total of about 8.12 billion gallons is expected to be consumed.
The board also reviewed a projected decline in operating capital from $17.9 million in 2014 to $9.6 million in 2012. Clayton explained the decrease is expected in order to service debt, which will cost about $5.22 million next year. Much of the debt was assumed with the purchase of Bessemer Ditch shares in 2009.
At the same time, Pueblo Water will begin to increase its water development fund with contributions from some of the lease revenues. Contributions to the fund were halted for several years in order to repay debt. Next year, the fund is expected to grow by $1.02 million.
Major expenditures include $3.26 million for utilities (mostly electricity), $1.73 million for outside services, $1.65 million for repairs or maintenance, $807,000 for water rights maintenance, $764,000 for chemicals and $220,000 for gas and oil.
Employee salaries and benefits will increase 2.5 percent.
More Pueblo Board of Water Works coverage here.