Independent water rate hikes still to come

While a hotly contested water rate consolidation proposal is off the table, Douglas County commissioners still must deal with rate hikes for customers of the county's eight water systems.

The board voted 4-1 Thursday to table the consolidated rate hike set to go into effect in July with full implementation in July 2014.

County Manager T. Michael Brown said Friday the independent water system rate hikes could not take effect any earlier than September.

"We have to do all the noticing requirements," Brown said. "We would anticipate the earliest implementation based on timing for noticing and board approval would be in September."

The proposed rates would be consistent with the interim rate study done prior to the consolidation rates.

Brown said consultant Karyn Johnson prepared the estimates for the water rate study.

"We'll use that column for this year with the possibility that there will be some kind of inflator on those rates. Some of those interim rates are over a year old, from Spring 2009. We have to build the rates to insure the funding sources are adequate to run the independent systems," Brown said.

Brown said staff will seek direction from commissioners for an individual rate study for each system.

"When we talked to the board, we asked for a rate study that allows us to set a two-year period so we don't have to come back every year," Brown said.

Brown said although the consolidation effort is on hold, he believes it will be back before commissioners.

"Comments by the board were that regionalizing systems is the right approach, consolidation is the right approach," he said. "It's an incredibly challenging issue to manage small systems like this.

"All the issues we brought up have not gone away. We have to be creative to do the best to provide water service at the least cost."

Brown said he didn't consider the staff time and money spent on the consolidation to be a wasted effort.

"The information Karyn (Johnson) presented was the analysis for the systems. It included comprehensive capital planning and studies of all the connection charges. We need to continue to resolve all of that. She addressed the demonstrated need for conservation and the importance of metering and protection of water rights. Brown said.

The county manager said the board's decision - after two years of debate - did not come as a surprise.

"I have seen all the board members struggle so hard with the impact of the rate increases to the east and west Valley customers, their concerns with equity and fairness. The biggest issue was the rate increase in this economy. It's still going to hit people really hard," Brown said.

He said the county would continue to pursue grant funding to offset infrastructure costs.

"We applied for $12 million in federal funding to interconnect the Lake systems to pursue regional water treatment. That would be a great opportunity. We're looking at federal funding to connect the Sunrise Estates and Fairgrounds systems to receive water from Minden to make that another connection to the regional system we're building now in North County.

"The consolidation, while the board didn't do it now, most comments focused on the timing, not that it isn't what they want to do," Brown said. "It's the way of the future."