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Montrose commission members weigh sewer rate increases to fund wastewater reuse project

City of Montrose commission workshop · July 23, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

At a City of Montrose workshop, members compared local water and sewer rates with neighboring towns, discussed modest sewer-rate increases and budget scenarios to fund a planned wastewater reuse project, and said they will plan contingencies while awaiting possible federal funding; no vote was taken.

City of Montrose commission members spent their workshop reviewing comparative water and sewer rates from nearby towns and discussing whether to raise sewer rates now to help pay for a planned wastewater reuse project.

Committee members examined a table of base monthly charges and per‑1,000‑gallon fees, noting that base charges are billed each month even when properties are vacant. One committee member said the table showed Montrose’s sewer charge listed at $11.35 per 1,000 gallons, which compares favorably with samples such as Annandale’s roughly $11.90 and Buffalo’s roughly $15 per 1,000 gallons. “So yeah. I mean, we’re fairly cheap if you compare it to other towns,” the committee member said.

Why it matters: commission members said they want to avoid having to make large, sudden rate jumps later if the city proceeds with the wastewater reuse project. A committee member argued the city should "get ahead of the game" by setting rates that allow project funding to be phased in, while also pursuing federal assistance.

During the discussion, one participant noted hope for federal support: “I’m hopeful that we’re going to get some sort of federal money to help bring some of that cost back,” the committee member said, adding that a measure had been approved in the House and they were waiting on the Senate. Participants cautioned against relying solely on federal funds and favored preparing local budget scenarios that show the effects of modest rate increases — suggestions ranged to preserving a 3% minimum increase as a planning benchmark and considering higher adjustments if needed.

Speakers also focused on rate structure details. A workshop participant explained the difference between combined base rates (monthly fixed charges) and usage-based per‑1,000‑gallon charges and noted how tier breaks (for example, 0–2,000 gallons vs. >2,000 gallons) can sharply change customers’ bills. “So even with the snowbirds or people that leave their houses, they’re getting charged every month no matter what,” a committee member said, underscoring the revenue role of base charges.

The group agreed on next steps that emphasize analysis rather than immediate policy changes: staff will prepare budget scenarios and rate models to show how modest increases would support the sewer capital plan and the wastewater reuse project so the commission can assess options without committing to a final rate change. No motion or vote was recorded during the workshop.

The workshop ended with the commission adjourning after directing staff to bring back clear budget scenarios and rate alternatives for future consideration.