Fort Morgan bumps water rates 5% to cover costs associated with NISP

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From The Fort Morgan Times (Jenni Grubbs):

The increase, which will be effective Jan. 1, 2013, means that someone whose water bill had been $67.52 per month in 2012 would start seeing water bills around $70.65 in 2013. Yearly, the increase means about $37 more for the average residential customer…

The increase is part of a multi-staged plan to increase water rates gradually to keep up with coming large costs of infrastructure replacement and investment in water storage through the proposed Northern Integrated Supply Project (NISP).

“We want to be ready for NISP,” City Manager Jeff Wells said.

Because of the city’s commitment to NISP, a number of large payments will come due for it in coming years, especially if the project gets the go-ahead from state and federal regulators.

“NISP will have significant impacts on the revenue requirements for the city’s water utility,” Water Resources and Utilities Director Brent Nation stated in a memo to the council. “Currently, the city pays for minor NISP expenses mostly involved in permitting the project, but construction is anticipated to begin within the next five years. Once construction begins, so does the city’s larger financial obligation to the project.”

More Northern Integrated Supply Project coverage here and here.

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