Photo by Daniel J. Chacon
Colorado Springs Utilities said it expects a series of planned 12 percent water rate increases to pay for SDS to be less than projected in coming years.
“The best word I can think of is thrilled,” Council President Pro Tem Jan Martin said.
The City Council has already approved two of the six 12 percent water rate increases to pay for SDS.
Utilities CEO Jerry Forte said the next two planned 12 percent water rate increases will be closer to 10 percent each and the fifth less than 10 percent.
The sixth and final planned 12 percent water rate increase may not even be necessary, Forte said.
Under the new schedule, the average residential water bill is now expected to be about $60 when SDS is complete instead of the $80-a-month originally anticipated.
“Water rates increases were originally anticipated to double monthly residential water bills to fund the SDS project,” SDS spokeswoman Janet Rummel said in an email.
“Lower financing and construction costs for SDS are now expected to cut the original projected rate increases by 50 percent,” she said.
Figuring 6 percent on a principal of $880 million created a widely reported estimate of $2.3 billion. Now, Rummel says, Utilities finance officials project a total cost of $1.6 billion, including interest, based on an average of 4.15 percent interest thus far and a range of 4 percent to 6 percent for future borrowing.
Banks borrow from the government at or near 0% – why can’t the city negotiate a better rate?
Daniel Chacon, Thanks for the post. I’ll take any savings I can get these days. //Larry