From The Fort Morgan Times (Slade Rand):
Rate increases tied into planning for possible NISP construction, city officials say
Brent Nation, the city’s director of water resources and utilities, proposed to City Council members on Tuesday night rate increases that would mean that city customers will pay 8% more for water utilities and 2% more for sewage utilities starting in January 2020.
The Fort Morgan City Council then unanimously voted to approve those higher rates during the regular City Council meeting on Tuesday, Dec. 3.
“Looking at your average water bill for a resident in the City of Fort Morgan, it would go from $84 per month up to $90.75 per month, is what (our consultant) was projecting the change would be,” Nation said.
That expected average increase of $6.75 per month for residential customers represents an 8% increase to the monthly consumer charge and a $0.29 bump in the commodity charge per 1,000 gallons of water. The consumer charge for a 3/4-inch water meter will increase from $42.39 to $45.78, and the charge for a 1-inch water meter will rise from $74.05 to $79.97 with the new rates.
Sewer collection rates will increase, as well, in January 2020, with a $0.42 increase in the monthly charge for a 3/4″ residential water meter. The metered consumption charge per 1,000 gallons collected is rising 4 cents or 5 cents depending on the water meter size.
The city is enforcing those higher rates as per the recommendation of a consulting firm Fort Morgan commissioned in 2018 to develop a 10-year water utility financial plan and a five-year sewer utility financial plan. Raftelis Financial Consulting gave the city a report that called for the two recent water rate increases and the sewer rate increase.
Last year, the city also raised water consumer charge rates by a similar 8% across the board…
Nation said the higher rates are necessary to better position the city and its cash reserves for completing the Northern Integrated Supply Project in the coming years, and to support the bond payments that project will require. NISP, which is entering its 16th official year in 2020, could provide up to 40,000 acre-feet of municipal water supplies for 15 cities in the Northern Colorado region by building two large water storage facilities.
Fort Morgan committed to paying a $900,000 portion of NISP’s $10 million budget for the upcoming year during Tuesday’s council meeting.