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Montrose staff warns residents: full treatment plant would sharply raise water bills

City of Montrose Town Hall · October 29, 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

Staff told residents a full $30 million treatment plant would mean a substantial near-term bill increase—about 200% initially—and then annual rate increases, alongside the city's projected annual bond payments starting around $2.69 million in 2026.

City staff presented an illustrative financing scenario showing a substantial impact on residential bills if the city moves forward with a $30 million full treatment plant.

The staff presentation said a loan-financed approach could require an initial increase "about 200% higher than your current water bill" followed by annual increases of roughly 7% thereafter. Staff also presented an example annual bond-payment schedule, starting near $2,692,000 in 2026 and tapering in later years in the schedule shown to the meeting.

Residents and council members repeatedly raised affordability concerns during the town-hall. "We didn't wanna give you a $200 increase on your water rates," a Committee member said while discussing alternatives and fiscal trade-offs. Staff and the presenter emphasized exploring modular systems and other smaller-scale solutions that could lessen the immediate rate shock.