Hurricane water board recommends 15¢ wholesale increase, agrees to revisit tier structure

The Citizens Water Board of Hurricane voted to recommend that the city adopt the WCWCD wholesale water rate increase of 15 cents per 1,000 gallons, and directed staff to return with a plan to revisit the cityrate tiers to reduce impacts on low-usage customers.

Board members said the wholesale increase is difficult to avoid given rising project and repair costs, but emphasized protecting households with the lowest water use. "Some of the people would ask who do the ones who don't need it sometimes. I think you're better off doing like that and said, I always felt like that we need to be able to protect those people on the very, very bottom somehow," a board member said during the discussion.

The board discussed options including preserving a low-cost first tier (several speakers suggested 0to 5,000 gallons), shifting more of the increase to higher tiers, and making the base rate include an allowance of gallons. One board member noted the cityloses roughly 19 percent of production at Dixie Springs, a loss that increases the need for revenue to repair transmission lines and finish planned projects. "That's where you need the $30... That's where we're struggling," a board member said of rising project costs since COVID-19.

Staff and board members also reviewed how other nearby cities are raising base rates and tiered charges. Board members asked staff to produce a revenue breakdown by tier so the board can model options that preserve an affordable bottom tier while offsetting the wholesale cost increase through higher upper-tier charges or other adjustments.

The motion before the board asked that Hurricane support the WCWCD 15-cent per 1,000-gallon wholesale increase and continue work on restructuring the cityrates to protect low-usage customers. Members voted in favor and the boarddirected staff (Ken and Clark) to prepare the tier-by-tier revenue analysis for the board and present recommended adjustments to the council.

Board members said personnel and equipment needs in the water department were also part of the budget context for the rate discussion: aging transmission lines, the need to retain trained employees and to fund repairs and infrastructure projects were cited as drivers for increased revenue. The board set a near-term schedule for staff to return with the requested financial modeling and suggested the city council could act in April or May to align with the districtimplementation schedule.

Votes at a glance: The board approved a motion to recommend the 15-cent-per-1,000-gallon wholesale increase, with the understanding the board will continue work on the tier structure and ask staff to supply a revenue-by-tier analysis. The motion passed (recorded as an affirmative vote during the meeting).