An increase in monthly water and sewer service rates in Dolores will go into effect in January.
The base water rate will increase by $5 to $30.84 per month, up from $25.84.
The base sewer rate will increase by $2.50 to $31.16 per month, up from $28.66.
Rate increases were approved by the town board in March, but implementation was delayed until 2021 because of economic challenges due to the pandemic.
The last time water and sewer rates were raised was in 2015. The town is reviewing a senior, income-based exemption from the latest rate increase.
Inflation and the need for infrastructure upgrades are the reasons for the rate increase, said Mayor Chad Wheelus.
While both the sewer plant and water plant are in good condition, outdated pipelines are deteriorating and need replacement.
Many water service pipelines are more than 50 years old, and their 4-inch diameter size is insufficient. The undersized pipes puts limitations on fire protection needs.
Wheelus said the town has replaced aging leaking water and sewer collection lines, more needs to be done.
“By doing nothing, residents, business owners and entities such as the school will increasingly feel the impacts of waterline breaks. It would be irresponsible for the town not take action and address these improvements,” he said.
Priority needs for the water and wastewater pipeline system in Dolores are estimated to cost $2.7 million, according to a recent assessment from SGM Engineering.
Rate increases will help cover current and future repairs and upgrades at the water and sewer plants over several years, town officials said during recent budget discussions.
In the fall, 10 deteriorated water lines passing under Colorado Highway 145 were replaced. The job was a priority because the highway through town is scheduled to be repaved by Colorado Department of Transportation in 2021. An upgrade to the water treatment plant also was completed this year.
To cover the approximate $800,000 cost, the town secured a $292,363 grant from the Department of Local Affairs, and a $25,000 grant from the Colorado Department of Public Health and Environment. Remaining costs were covered from town reserves and a loan from Dolores State Bank.
The water rate increase will go toward paying off the loan.
The water and sewer funds break even for operations each year. Because of ordinary inflation, the costs to operate and maintain the water system increase over time.
According to town documents, there are numerous other infrastructure needs pending within the next 5 to 10 years in Dolores. The rate increase will help build up the reserve to pay for future water and sewer upgrade and maintenance projects.
The increase will also help offset ordinary inflation of costs to operate and maintain water and sewer utilities, officials said.
Dolores has significant remaining capacity in both treatment plants, they said, and both plants are also meeting state standards for water quality. Regarding water quantity, SGM said water supply, and the water and sewer treatment systems are sufficient, and the plants have capacity to meet growth in town without major repairs or expansion.