MEEKER | Meeker’s Board of Trustees and town staff began preliminary discussions about the need to raise water rates at last week’s meeting.
Town Manager Mandi Etheridge explained that the current rate structure covers operational costs, but provides a “very slim margin” — about 9% — for building reserves in the water fund. “With the ever-increasing costs of maintenance and infrastructure, reserves are not going to be enough for replacement and repair of aging infrastructure.”
The base rate for residential water is $24 a month, with increasing tiers for usage that exceeds 8,000 gallons per month and higher rates for bulk water users. Bulk water rates were last raised 12 years ago. The last time the bulk water rate was increased was 12 years ago.
In addition, water tap fees for new development are calculated to offset capital expenditures, but “aren’t keeping up” with costs.
Reserves are needed to provide matching funds to apply for grants from the state for large-scale projects, such as the replacement of the Garfield Street water line, which was originally installed in 1929. The Town has received a $1M grant from the Department of Local Affairs for that project, but the project will deplete the current reserves. Etheridge said they’ve been told that the town needs to create a self-sustainable system. Failure to do so would make the town less competitive in seeking future grant funding.
The state average for residential water is $44 a month. The regional average is $43 a month. Recommendations for water rates are set at 2.5% of the median monthly income, which would be $144 a month. “We’re not going anywhere near that,” Etheridge said.
“People are paying half as much to get the water than to get rid of it,” commented Charles Day, who also serves on the sanitation district board.
Town staff plans to take advantage of access to free technical assistance from the Colorado Rural Water Association to get an analysis of the rate structure and usage records, with the intention to present a resolution for a rate increase based on the results of that analysis at the May 6 meeting. Increases would not go into effect until September.
The board also discussed the creation of a Meeker Housing Partnership, which will be funded as a non-profit foundation from a local housing capacity grant, and discussed the need to revisit the watershed protection district and enforcement for the town’s water wells. The two newest wells are being tested and assessed this week for “groundwater influence.”
In other business:
• There will be three planning commission seats coming up for renewal, with appointment in early May. Interested parties should contact the town.
• A workshop to discuss the egress access on Robert Street to the Sage Hills Subdivision will be scheduled.
• Approved a $1,000 donation to the Meeker High School post-prom party committee. The after-prom party is held at the high school. About 120 students attended last year.
• Approved a $5,000 donation to the Range Call committee.
