Water district proposes rate increases
August 8, 2014
Mountain Regional Water requested rate changes in 2014 and 2015 to keep up with escalating costs, said officials of the special service district at the Wednesday, Aug. 6 work session for Summit County Council.
Mountain Regional Water serves more than 5,000 customers in the area surrounding Park City.
The district requested a rate increase of 3.75 percent effective this month, and a second increase of another 3.75 percent effective in August, 2015. The last rate increases came in August, 2012, said Mountain Regional Chief Financial Officer Scott Green.
The need for the rate increases are due to Mountain Regional’s three largest budget items, which are projected to increase by an amount of an average of $305,036 each year, Green said. The three budget items necessitating the rate increase are:
- Rocky Mountain Power costs
- Weber Basin lease fees
- Debt service (bond payments and required debt coverage for existing debt)
Mountain Regional Water currently has several different rates, but in the new plan the basic residential flat base rate would be $60 per month. (Prior to the rate increases, the monthly rate ranged from $56 to $73.25.) After the flat base rate, usage would be charged according to how many gallons were used. This way, residents would only pay for the amount of water they used, Green said.
The district also recommended an average fee increase of 20 percent. Fees had not been raised since 2003, and Green said almost all fees are one-time payments that do not affect existing customers who pay their bills on time. Examples include shut-off notices and conservation violations, and do not include impact fees.
If approved by the Summit County Council, the proposed changes would be reflected in September’s bill, Green said.
Mountain Regional’s proposed rate increases will receive a public hearing on Aug. 20.
Rate increases will probably need to be implemented through 2019, Green said, but the Council was in agreement that they would likely approve only a two-year rate increase at this juncture.
Mountain Regional, according to its website, serves the following developments: Promontory, Silver Gate; Old Ranch Road; Atkinson, Park Ridge, Silver Summit; Silver Creek Commerce Center; Newpark, Spring Creek, Woodside Homes (Plat I); Glenwild, Red Hawk, The Preserve, Stagecoach Estates; Silver Springs, Quarry Mountain, Willow Creek, Sun Peak; The Colony; Summit Park, Timberline.