Randolph City needs to increase water rates

RANDOLPH WATER RATE INCREASES, 2020

It has been brought to the attention of the Randolph Water Department that it is vitally important that we increase our water rates.  After several attempts to secure grants and/or loans during 2019, we were met with the same response.  “You do not charge enough for your water to make a loan or grant viable.  You need to increase your rates to even apply.”

Small towns all over Utah are being met with the same response.  Laketown has recently raised their rates to $48 per month and charge .0025 for overages.

    

Tabiona has also raised their monthly rates from $23 per month to $33 for 12,000 gallons of usage.  Hanna water system, also in Duchesne County is charging $57 for 7000 gallons of water.  Commercial water hook ups are charged either $43 or $53, depending on size and estimated usage during unmetered months. 

The last time water rates were increased was August of 2008.  At that time, the base rate went from $16 to $20 for 20,000 gallons per month, or a 25% increase. 

If we raised the base rate 25% now, we would be charging $25 per month for 20,000 gallons.  (Gallons per month could also be adjusted.) 

If we adjust Overage 1 for 10,000 gallons from $.001 per gallon to $.005 per gallon, it would increase the first tier of overage from $10 to $15 using all 10,000 gallons. 

If we adjust Overage 2 for 20,000 gallons from $.0015 per gallon to $.002 per gallon, it would increase the second tier of overage from $30 to $40 using all 20,000 gallons.

If we adjust overage 3 for unlimited gallons from $.002 per gallon to $.003 per gallon, it would increase the third tier of overage from $40 to $60, using an example of 20,000 gallons.  

  

We have 24 commercial hookups in the town of Randolph.  Increasing their base rate would be an option.  This is something nearly all small systems have in effect due to their high consumption during unmetered months and the use of town water for commercial gain.  

Consideration is being made for a future plan where rates will go up incrementally over the next 5 or 10 years, or even longer. 

Our System is Aging.  The last major improvement was done in the 1980’s.  Several of our shut off valves do not work.  It is not if we need major repairs, but when.  The town is trying to be proactive and prepare for the future.