Coeur d'Alene presentation outlines $84.3 million water capital plan and a rate scenario with 22% increases through 2027

A rate-study consultant told Coeur d'Alene officials that funding an $84.3 million water system capital plan would likely require front-loaded rate increases and other revenue changes.

The consultant said the study uses the city’s 2025 water budget as the baseline and examines an eight-year planning window from fiscal year 2025 through fiscal year 2032 (the model is built to 20 years but concentrated on the eight-year rate-setting period). The consultant said revenue and expense forecasts assume 1.15% annual customer growth (about 300 new units per year) and roughly 3.5% annual expense inflation.

The nut of the presentation was the funding plan and scenarios. The consultant summarized one scenario that would fund the full $84.3 million capital plan through a mix of rate revenue, updated capitalization fees, and a new $5 million debt issue. That scenario would add roughly $736,000 in annual debt service on a 10-year payback. To support the full plan, the consultant said the city would need roughly 22% rate increases from 2025 through 2027, followed by 2% annual increases through 2031. The consultant estimated the…