From The Fort Collins Coloradoan (Pat Ferrier):
Wellington faces a Catch-22, caught between its desire for growth and the water issues that threaten to slow it to a crawl.
The town of about 12,000 has plenty of water — the lifeblood of any community — to serve thousands of new homes. But the cost of water is rising rapidly and the town currently lacks the capacity to store it, treat it or flush it. Both its water and wastewater treatment plants are overextended.
Expansions are underway but still three years away from completion.
It’s not a new problem for Wellington, which earlier this year raised water rates to pay for an expansion of its water and wastewater treatment plants, imposed water restrictions and limited new residential building permits to about 100 per year until the expansions are complete.
The very measures it’s taking to create that infrastructure have raised water rates to the highest in Northern Colorado, which could, in turn, adversely affect growth as builders consider their options.
It’s a fragile balance that’s frustrating residents who are now paying about double what they were two years ago and has the town asking for patience.
Residential water and sewer taps, the largest slice of new development impact fees collected when a building permit is issued, went from $5,500 to $7,500 for a typical home tap and sewer taps increased from $7,500 to $9,700.
Those fees, which also pay for things like parks, streets, water and sewer lines, are typically passed on to the homebuyer or business, which is one reason the cost of homes is going up in Wellington…
Continuing to increase impact fees while at the same time limiting the number of residential permits to stay within treatment capacities “could reach a point where developers or buildings are unwilling to build in Wellington,” the town wrote on its website, “and could result in a slowdown or stop to new development, shifting the cost of paying for improvements onto existing residents…
When treatment plant expansions are done in 2024, they will be able to support Wellington’s expected growth for about 20 years, when the population is expected to double to about 24,000, Town Administrator Patti Garcia said.
Plant expansions won’t bring rate relief, however, she said. Base water rates were raised $31 — to $66 a month — in January to pay the debt service on the water treatment plant. To get the loan, the town had to prove it could pay it back, Garcia said…
For comparison, Fort Collins’ base water rate is $18.30 with a charge of $2.83 per 1,000 gallons of water up to 7,000 gallons. Like Wellington, it has tiered rates that go up the more water used. The charge for water over 13,000 gallons is $3.75 per 1,000 gallons.
That means a Wellington resident using the average 7,000 gallons per month would pay $97.92 per month compared to $38.11 for the same amount of water through Fort Collins Utilities…
It won’t help rates, but finishing the treatment plant expansions should ease water restrictions and lift the moratorium on building permits…
Wellington is served by the North Poudre Irrigation Co., whose share costs have risen 40% since 2018, when the town wrote in its resolution to increase rates. That resolution passed in August 2020. NPIC water currently sells for $200,000 or more per share.
In response to past increases and hedging its bets against future increases, Wellington increased its raw water rates from $19,285.50 to $67,586 for 0.58 acre feet of water — the amount of water it requires for every developed dwelling unit.
“Once we have capacity in the water treatment plant we will be fine,” Garcia said. “We have plenty of water, the issue is having the capacity to provide it, store it, use it and flush it. We’re looking forward to what 2024 can bring.”