Ogden council to consider new utility rate ordinance to cover water system improvements

OGDEN — It looks as if water utility rates will go up for most Ogden residents.

After spending much of the past few months studying Ogden’s current water rate structure and associated capital improvement projects, the city council will spend the next two weeks considering a new utility rate ordinance.

Under the proposed ordinance, base culinary water rates would rise from the current price of $14.98 to $17.50 in fiscal year 2013 for all water customers with a 5/8- or 3/4-inch meter, which 93 percent of Ogden residents have.

According to a report from Lewis, Young, Robertson & Burningham, the city’s consultant on the rate study, rates overall will increase by 7.8 percent in FY 2013, which includes a 2.8 percent increase for Consumer Price Index increases, or inflation.

Rates will increase by another 7.5 percent in FY 2014 and by 6 percent in FY 2015.

The rates vary based on meter size, usage and whether a resident has secondary water.

According to LYR&B’s report, the typical Ogden water user who has culinary and secondary water uses about 6,000 gallons of culinary water every month. Those users will see their culinary water bills increase from $21.72 per month in FY 2012 to $26.50 in FY 2013.

The typical resident without secondary water uses about 20,000 gallons of culinary water per month. Those users will see their culinary rates increase from $56.23 per month in FY 2012 to $58.70 in FY 2013.

Cody Deeter, with LYR&B, said the rate increases are necessary to help pay for $46.7 million worth of water capital improvement projects over the next 10 years.

LYR&B is recommending that the city issue bonds for $17.8 million to help pay for those projects.

Deeter said $13 million of those bond funds would be used to replace Ogden’s aging water treatment facility.

A 2008 bond paid for about $50 million in water and sewer projects, but some of the more expensive improvement items, like the water treatment plant, could not be covered.

A public hearing on the ordinance will be held May 15 at the Ogden Municipal Building, 2549 Washington Blvd. If the ordinance is adopted, new rates will go into effect July 1.

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