Rate hikes likely after drop in water use

11/21/03

By Thomas Burr
The Salt Lake Tribune

Use less water, pay more.
Residents did a good job of conserving water this summer -- too good in some areas, where customers may now pay more to keep water flowing to their taps.
"Isn't that a bummer?" says Mike Embley, manager of the Kearns Improvement District, which is raising rates for its 12,500 customers by $3 a month after a summertime drop of 12 percent in consumption.
"I jokingly tell my staff we've done such a good job on conservation we need to do some marketing now."
Embley says the increase is necessary to keep operating in the lean economic times. The district already is pinching pennies, including cutting one staff position and holding off on capital purchases.
"We're having to squeeze everywhere we can," Embley says.

Other water districts are facing similar situations.
The 16,000 customers of Taylorsville-Bennion Improvement District, for example, probably will see rates raised eight cents per 1,000 gallons.
"It's sad," says General Manager Floyd Nielson, who notes an estimated 6 percent drop in use contributed to lost revenues. "In a way, it's punishing them [users] for doing what you asked them to do. It's unfortunate."
But also necessary, officials say, because every district has fixed costs, and when revenue dips, it has to be made up some way.
Overall, they add, the incremental hike will be far less than what it would cost to pipe in more water -- which could be a multimillion-dollar venture.
"It will really pay off in the future," says Erica Thoen, water conservation coordinator for the Utah Rivers Council. "This is by far a cheaper investment than having to develop a new water project."
Salt Lake City -- which restructured its water rates this summer with a 9 percent increase -- also had a shortfall of $3.3 million because of the drought conditions. Residents of the city used 18 percent less than the previous year.
The deficit was made up by delaying capital improvement projects, cutting the budget and dipping into reserve funds.
The city's water conservation director, Stephanie Duer, says a short-term increase will lead to a better long-term picture. By not using more water, residents are saving millions of dollars, she says.
"The money we're saving is not in someone's wallet now," Duer says. "It's the money we don't want to spend 10 years from now. It's money that would come out of your child's wallet."
Still, residents probably will be concerned about growing rates, especially after being told to not water as much.
"It's ironic," says Stacey Hutchings, chairwoman of the Kearns Community Council. "We conserve our water, so now we have to pay more."
Hutchings says the hit will be hard on the elderly with fixed incomes. "It's understandable, but at the same time, it hurts."