Cheyenne discusses water service fee increase amid demand and inflation concerns

The Cheyenne City Council held a work session on April 18, 2025, to discuss the upcoming fiscal year 2026 budget for the Board of Public Utilities (BOPU). A significant focus of the meeting was on the financial aspects of water services and the proposed adjustments to service fees.

During the presentation, officials highlighted that while the water sector generates more revenue, the overall financial performance of the utility remains a challenge. Inflation rates were noted to fluctuate between 1.6% and 4.7%, impacting budget planning. The average water demand is projected at around 10,000 acre-feet per year, influenced by major users such as HollyFrontier and the golf course at F.E. Warren Air Force Base.

One of the key proposals discussed was an increase in the service fee by $3, which would raise the base charge for a typical customer using 1,000 gallons to $16.84. Comparatively, the average base charge in other Wyoming communities is $19.18, indicating that Cheyenne's rates remain competitive.

The council also examined the impact of these charges on low-end users. Approximately 20% of residential customers only pay the base fee, particularly during winter months when water usage is lower. This structure aims to provide some financial relief during dry years when irrigation needs increase, while also helping stabilize revenue for the utility during wetter years.

The meeting concluded with a discussion on the implications of these changes for residents and the overall financial health of the BOPU, emphasizing the need for careful consideration of service fees in relation to customer usage patterns. Further discussions and decisions regarding the budget are expected in upcoming council meetings.