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No Comments [ Add Comment ]Ogden needs a water-rate study
By Mark DanenhauerEach morn
ing many of us wake up and begin our day in the bathroom where we turn on the faucet or shower and -- usually -- clear water comes out.
However, more and more frequently residents of Ogden are instead confronted by discolored and silt-filled water, a signal that our aging infrastructure is in desperate need of repair.
The need for repair is complicated by a serious budget crisis facing the city's water utility. Ogden has been under-pricing water, so the true cost of this resource is not captured in our water rates.
The result is that the city has been unable to generate enough revenue to operate the utility, let alone pay for upgrades to the system, estimated to be $130 million dollars.
These infrastructure repairs are extremely important to ensure the delivery of clean water to residents. Failing to act now to make necessary repairs could result in a system failure; which would be much more costly to fix and impair the quality of life that Ogden citizens cherish.
How did we get here? From 1986 through 1996, the city did not raise water rates at all, despite a 40 percent inflation rate during that time. By not keeping up with inflation to cover the cost increases for water rights, treatment and delivery infrastructure, Ogden now is forced to play catch up.
The city took one good step forward in 2002 when it adopted an increasing block rate structure. This design is fundamentally fair, with customers charged on the basis of the costs they impose on the utility. Customers who use more water pay more. This structure reflects the burden high volume users place on the utility, expediting the need for infrastructure upgrades and finding new supplies.
Eventually the citizens of Ogden will have to address the infrastructure problems of the city's aging water system, and as emphasized by City Council in the 2006 City Budget "to delay maintenance on the city's facilities means the repairs will cost our taxpayers more in the future."
These words are fine; but now it's time for action.
If the city were to adjust its water rate structure just slightly, it could generate nearly $1 million more each year. This revenue increase would come with minimal impact to residents of Ogden, costing only about $3 a month less than the cost of a gallon of orange juice, and well below the annual increases that have been imposed for electricity. It seems like a good investment to stave off even greater costs in the future.
Ultimately it comes down to whether Ogden's municipal leaders have the foresight to make a decision that at first glance appears to be unfavorable, but in the long run will save us all money. When I am making decisions about how to manage my money and pay the bills, I always try to make the most prudent choices. I would much rather pay a few extra dollars each month now rather than getting stuck with a huge bill for thousands of dollars at some point in the future. I expect my city leaders to manage Ogden's money like I manage mine.
As the elected officials of our city are the ultimate decision makers when it comes to water rates, the City Council and the mayor should help to protect our water-delivery system and our wallets by adjusting our water rates to ensure that delivery of high-quality water to our homes continues uninterrupted long into the future. The best way to do this is to conduct a comprehensive water-rate study. This will give Ogden a realistic picture of the current situation within the public utility for water and make some recommendations on how to improve the water rates to best meet the city's needs now and into the future.
Danenhauer is river solutions coordinator for the Utah Rivers Council.
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