The Town of Mancos needs to replace some 9,000 feet of deteriorating water lines at a cost or more than $1.5 million.
Gabe Preston of Durango-based RPI Consulting presented town trustees with the news on Wednesday, Nov. 13. Most of the failing lines are located on North Main Street, East Menefee Street as well as south of the Mancos River along First Street and Second Street. Approximately a fifth of the town's water is lost annually to leaky pipes and outdated water taps.
"Some of the pipes are very old," said Mayor Rachel Simbeck. "They are in dire need of replacement."
Calling to replace the lines within the next decade, Preston urged the town to consider increasing water rates to offset the capital improvement project. He said the town's current water rates are not only below average when compared to other small towns in the region, but the amount of water appropriated monthly to customers is also above average when compared to those same towns.
Preston provided town trustees with three possible options. One would maintain the current $25.72 monthly water rate for residential customers, but lower the total amount of water included under the rate from 10,000 to 7,000 gallons per month. Preston said the model would increase annual revenues by $17,000.
"Under this scenario, operations and maintenance would still outpace revenues by 2018," Preston explained.
A second option calls to lower the water threshold from 10,000 to 7,000 gallons in combination with a $5 monthly increase to the base rate. This alternative would increase annual revenues about $58,000, he said.
"This model gets you closer to the range needed to actually accomplish capital improvements and replacement projects," Preston told trustees.
The final option proposed to town officials again lowered the amount of water to 7,000 gallons per month, but in connection to a $15 monthly increase to the base rate. This plan would provide an additional $119,000 in annual surplus revenues, Preston added.
"There's a trend across Colorado where many towns are charging higher rates," Preston said. "This would be the best model to accomplish your capital improvement goals."
Under the current base rate, more than half, 56 percent, of the town's generated water revenues are spent on administrative costs. After water treatment, storage and distribution costs, only about a tenth of revenues are remaining to cover capital improvement projects.
Preston said some residents will reject any rate increases, but he added that many more expect leaders to make tough infrastructure improvement decisions.
"This stuff is buried," Preston said. "No one sees it, and no one really cares about it until their water doesn't work or turns brown."
Mayor Simbeck said officials should address water rates, adding the town's general fund should not be used to subsidize needed capital improvements. Trustee Alan Rolston agreed.
"It's foolish," Rolston said. "We have to make these improvements."
Trustee Queenie Barz voiced concerns for residents on fixed incomes, suggesting leaders should obtain feedback from their constituents before spiking water rates. Trustee Chip Tuthill agreed.
"If we hit residents with a $15 monthly increase to their water rates, they'll burn our effigies in the streets," he said.
Preston then reminded trustees they could phase in the water rate increases over time to help ease the sticker shock. Officials ultimately decided to table the matter until the New Year.
"This is going to be a hard sale," said trustee Todd Kearns. "But the sooner it's done, the lower the long term costs."
