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Boise water renewal staff outline a $1.3 billion, 10-year capital plan and warn of possible steep rate impacts
Summary
Staff presented an escalated 10-year capital-improvement plan (roughly $1.3 billion in 2026 dollars) driven by Lander Street and West Boise upgrades and collection system rehabilitation. Preliminary modeling shows residential bills could reach roughly $90–$130 per month by 2030 depending on financing choices; including the recycled water project in the near term would raise that illustration further.
City of Boise Water Renewal staff told the Public Works Commission that an updated 10-year capital-improvement program (CIP) could reach about $1.3 billion in 2026 dollars as the utility balances repairs, regulatory drivers and growth.
Allie Hornak, the utility planning manager, said the consolidated CIP includes continued Lander Street work (roughly $240 million), major solids and reliability work at West Boise (roughly $385 million), river-quality and treatment projects tied to regulatory outcomes, and yearly collections rehabilitation across more than 1,000 miles of pipe. Staff said the current set of active projects totals about $465 million in design and construction.
Hornak and Josh Baker framed the cost escalation as the result of multiple factors: aging assets, tighter and evolving regulatory expectations, higher material and equipment prices (notably post-2021), and strong regional growth that affects loads and treatment needs. Baker said about 70% of the current active work is condition-related replacement and that many projects require more trade labor and specialized equipment than earlier estimates assumed.
On financing, staff outlined the trade-offs between bonds and rates. Bonds can lessen near-term rate shock by financing large up-front work but increase long-term interest costs and reduce borrowing capacity in future years. Financing primarily through rates reduces interest expense but pushes larger, faster increases onto customers now. Staff said they will pursue a blended approach and return in the fall with modeled scenarios.
Hornak presented preliminary residential-bill illustrations tied to the $1.3 billion CIP showing a potential range of roughly $90–$130 per month by 2030 depending on assumptions about sequencing and the bond/rate mix. She said those figures exclude the recycled-water project; in staff’s rough illustration, including the recycled-water project in the near term could push the hypothetical monthly bill to about $175 in a high-cost case. Staff emphasized these are modeling outcomes and that council direction and regulatory outcomes will narrow final options.
Director Burgos told the commission that despite growing needs staff have retained a double-A rating from rating agencies and found good market interest when issuing recent bonds, which staff said provides some financing flexibility.
Commissioners asked for more detail on cost-of-service allocations among residential, commercial and industrial customers and asked staff to present the updated cost-of-service study in an upcoming work session to show how increases would be distributed across customer classes. Staff agreed to provide a deeper briefing in the coming months.
