The city’s utility rates will go up in January, and residents can expect to see the increases on their February bill.
The average bill for all city utilities is expected to be about $109, up from an average of $98.56 in 2016. Residents are more likely to see a bill close to $109 in the summer when they use more water.
Water and sewer rates will increase by 10 percent, and the rate for trash and recycling services for many will go up by 9 percent.
The Durango City Council voted in 2014 to raise water and sewer rates for three years starting in 2015, so this is the final year of major increases for water and sewer. In 2018, the rates for both utilities will increase by 2 percent.
Prior to 2012, sewer rates hadn’t increased substantially for about 20 years, said Mary Beth Miles, assistant to the city manager.
The higher rates will pay for major upgrades, including the sewage treatment plant construction, a new water treatment plant near Lake Nighthorse and a new recycling center.
The city expects to start construction on the sewage treatment plant project in June, and late this year the city was granted a $62.5 million loan for the project.
An assessment in 2012 showed the plant needed to be upgraded or replaced.
“It was just undersized for the amount of material,” Miles said.
Construction is expected to take three years and it will consume a large portion of Santa Rita Park, she said.
The city expects to start construction this summer with demolition of the administration building at the entrance to the plant.
The administration building will be replaced by the aeration basins, which are needed to meet the state’s requirements for the removal of phosphorous, nitrogen and ammonia.
The basins are expected to be completed by March 2018 – in time to meet the state’s permit requirements, Miles said.
The city estimates construction of the plant, excluding the design, will cost $53.8 million.
But the city has not put out a call for contractors to bid on the project, so the estimate could change, Miles said. Once hired, the contractor will be in charge of phasing the project.
The city held an event a few weeks ago for contractors to tour the site.
“We tried to really make that an opportunity to put the local folks in contact with the larger regional firms,” Miles said.
Any funds left from the $62.5 million sewage-plant loan the city will be able to use for other sewer infrastructure projects.
For example, the city plans to replace utility lines along Main and Second avenues, Miles said.
When the voters approved the project, the city anticipated there could be $10 million left from sewage plant construction.
The city’s next large infrastructure project, building a new water treatment plant, has been delayed because the city is working on acquiring land, she said.
The delay helped the city reduce water rates. The city had expected to increase rates by 32 percent in 2016, but instead raised them by 10 percent in 2016 and 10 percent in 2017.
Trash and recycling rates also will go up to pay for more bear-proof trash cans and a new recycling center to accommodate growth.
An old estimate anticipates a center costing $1.4 million, but that does not factor in land.
As a result of the rate increase to pay for the center, those with a 60-gallon trash can expect to see the bill rise from $17.29 to $18.85.
Those with 90-gallon cans will see their bills rise from $24.32 to $26.79.
The Durango City Council discussed changes to trash and recycling rates in the fall and approved a differential to encourage residents to recycle and use smaller cans.
mshinn@durangoherald.com
