Water, Sewer, and Stormwater Rates to Increase in 2009

Unfortunately, due to circumstances beyond the City’s control, City staff proposed and the City Council approved rate increases for water, sewer, and stormwater services.  In addition to the increased rates being passed on to Arvada by both the Metro Wastewater Reclamation District and the Denver Water Board, our aging water and wastewater infrastructure (much of which was constructed before 1975) is in need of major maintenance and/or replacement.  In order to simply keep up—not accelerate—our ability to maintain this critical infrastructure, staff reluctantly proposed rate increases of seven percent, nine percent, and two percent for water, wastewater, and stormwater, respectively.

Water
A 7% rate increase will help meet the following goals:
• Reduce the current $1.8 million shortfall between expenses and revenues.
• Replace water infrastructure on a timely basis.
• Higher costs in power and heat, supplies, and personnel.

The projected water budget for 2009 is $19,090,000. This is 1.9% higher than the 2008 budget. Recognizing that the national and local economy is in difficulty, the 2009 budget has been designed with many line items frozen at 2008 levels.

The rate increase will add about $2 per month to the average single-family water bill.

Sewer
A 10.5% increase in wastewater user rates will help meet the following goals:
• Eliminate the current $1million shortfall between expenses and revenues.
• Replace the wastewater infrastructure on a timely basis.
• Higher costs in power and heat, supplies, and personnel.

The projected Operations and Maintenance budget for 2009 is $9,955,000. This is 2% less than the 2008 budget. The 2009 budget has been designed with many line items frozen at 2008 levels.

In recent years, the City’s annual payment to the Metro Wastewater District has fluctuated dramatically. In 2008, the payment was $5.6 million. In 2009, it will be $5 million. In 2010, it is expected to be $5.6 million. These swings make it difficult to determine appropriate wastewater rates. It is known that the Metro District will be required to spend $1 billion over the next decade to improve the wastewater treatment system so our costs in this area are only going to rise.

The rate increase will add $1.72 per month to the average single-family customers sewer bill.

Stormwater
A 2% increase in stormwater user rates will help boost the utility’s replacement budget.  The projected Stormwater Fund budget for 2009 is $3,751,000, and has been designed with many line items frozen at 2008 levels.  

The rate increase will add $0.09 per month to the average single-family customer’s stormwater bill.

Cost Comparison
Water, wastewater, and stormwater costs for Arvada customers remains one of the lowest in the Denver metropolitan area.