Coeur D'Alene outlines 5 year capital plan with phased rate increases for water funding

The City Council of Coeur d'Alene convened on June 3, 2025, to discuss significant financial planning for the city's capital projects over the next several years. A key focus of the meeting was the proposed rate increases necessary to fund the city's capital plan, which includes essential infrastructure improvements.

City officials outlined a projected 22% rate increase for residents from 2025 to 2027, which would subsequently decrease to 2% annually through 2031. For a typical single-family residence, this translates to an estimated monthly impact of approximately $5.23 in 2025, rising to about $7.80 by 2027 before dropping to under a dollar in later years. The rationale behind this fluctuating rate structure is to ensure adequate funding for upfront capital needs while managing costs over time.

The discussion also highlighted the importance of accurately assessing water usage patterns among residents. City representatives noted that average monthly water consumption is based on specific statistics, with significant seasonal variations. For instance, winter usage averages around 5,000 to 6,000 gallons, which can quadruple during the summer months due to outdoor activities.

Concerns were raised regarding the potential risks associated with cutting capital costs. Officials emphasized that while some deferred maintenance might seem manageable, it could lead to slower growth and increased infrastructure challenges in the future. The capital plan is designed to address both current needs and anticipated growth, ensuring the city's utility systems remain effective and reliable.

The meeting also included a review of the five-year capital improvement plan, detailing various projects aimed at enhancing water supply, storage, and distribution systems. City staff assured council members that they have consistently adhered to the capital plan, maintaining alignment with the city's growth and infrastructure needs.

As the council moves forward, the discussions from this meeting will play a crucial role in shaping the financial strategies necessary to support Coeur d'Alene's development and infrastructure sustainability in the coming years.