Cortez residents will be paying more for water usage in 2013.
City of Cortez Public Works Director Jack Nickerson informed the city council Tuesday night that the city was not charging enough to pay for the service.
The water reserve fund currently stands at $800,000, and Nickerson said this fund has to be increased. He said that if there was a major issue, the city would not have enough funds to get it fixed without increasing the cost per user.
The increase would be minimal for most homeowners with rates going from $13.75 a month to $14.75 a month and an additional 20 cents for every 1,000 gallons of water used monthly.
Businesses will see their water rates increase from $14,75 to $16.50 after the first of the year.
Nickerson said the city could come back next year to ask for an additional increase, but that would depend on the results of the 2013 increase.
We really do need to get back on our feet, Nickerson said about the necessary fee increase.
City Manager Shane Hale projected that the increased rates would bring in $164,000 in additional revenue in 2013.
Council member Matt Keefauver said the minimal increase for homeowners for water usage appears to be reasonable.
I still think a $1 a month increase is (small), Keefauver said.
Nickerson said that the city was down $300,000 in 2011 and was losing money on the service it provided.
We are not trying to stick anyone, we are just trying to survive, he said.
Council members were concerned about the water fund because a water treatment plant issue could quickly cost the city more than $1 million to repair.
Nickerson pointed out the South Broadway project alone ended up costing the city $800,000.
He also said he did not want to hit the residents with a large increase right away and would prefer to phase in the increases over time if that was the need.
It has to cash flow on its own, said the public works director.
The water fee increase is not related to the $1.32 million payment that was sent to the Cortez Sanitation District in two installments several months ago to settle some billing errors.
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