Des Moines Water Works eyes 10 percent rate increase next year
The Des Moines Water Works’ long discussion of a 10 percent rate increase is set for a final vote Oct. 25.
The new budget combines the expense of keeping nitrate and disinfection byproducts at safe levels, paying higher costs for payroll, insurance and chemicals, and updating and expanding the water system. The result: A board committee this week recommended a 10 percent increase for most customers. In Alleman, where costs have been higher, the increase would be 15 percent. Customers who buy water “with storage” would pay 5 percent more than before.
The 2017 rates, if approved by the utility board, would take effect April 1.
Ted Corrigan, director of water distribution, said nitrate levels have been rising again lately in the Des Moines and Raccoon rivers and are close to the drinking water limit. That could mean the utility has to turn on its nitrate-removal system again.
The cost of treating nitrate — one of the subjects of the Water Works’ federal lawsuit against drainage districts in three northwest Iowa counties — is likely to be a bigger issue in the 2018 budget year. Consultants have delivered a long-term nitrate mitigation plan that could include a new nitrate-removal plant. The utility also is using more water from various sources, and experimenting with using wetlands to reduce the contamination, too.
Board member Susan Huppert said she’s heard from many customers opposed to a sharp increase in rates, but she added the utility has to meet federal regulations for water quality. “It’s not an easy task to raise rates,” she said. “We’ll have more revenue, but we have to do it in the best interest of customers.”
The proposed budget projects a 2.5 percent increase in operating expenses, to $41.6 million. Revenues would rise 4.4 percent, to just short of $62 million.
Including improvements to Water Works Park that would be privately financed, the capital expenditures budget would jump 33 percent, to $29.6 million.
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