For the first time in seven years, the Ute Water Conservancy District is raising its rates.
The utility’s board of directors voted Wednesday to approve a water rate hike and tap fee increase, saying it was doing so to cover increased costs since the last time rates were increased in 2016.
“Since 2016, general operating costs have risen steadily, and in recent years, chemical costs to the water treatment process have increased in price dramatically due to supply chain issues,” the district said in a press release.
“The 2023 budget includes a 77 percent increase in chemical costs from the 2022 budget. Some of the chemicals used in the water treatment process have risen in cost of up to 300 percent between 2021 and 2022.”
The district, which supplies water to about 88,000 customers in Mesa County, is increasing its monthly rate of $22 for the first 3,000 gallons to $25 for residential customers. It also is increasing by 15% its tiered rates for water usage above 3,000 gallons.
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The minimum rate and tiered rates for non-residential customers also will increase by 15%.
The new rates are to go into effect starting in January, which customers will see on their February bills.
“The district’s primary sources of revenue is water sales,” the district said. “The revenue from water sales is expected to cover all operations, maintenance and replacement costs of the existing infrastructure while preparing for future demands and upgrades to the system.”
Also in February, the district is increasing the one-time tap fee it charges for new construction by $1,000.
Currently, the fee for a 5/8-inch meter, the average size of a residential meter, is $7,000. Fees for larger meters are to increase proportionately.
Before the district raised its rates the last time, they were set at $20 a month for the first 3,000 gallons used, and its tap fees were $6,800. The reason for that rate increase was to help offset the cost of the district’s purchase of Ruedi Reservoir near Basalt from the Bureau of Land Management.
The additional revenue from that increase was used to expand Monument Reservoir on Grand Mesa.
