press release

September 2, 2003

RATES HELD TO 6.9 PERCENT INCREASE

Sweetwater Authority Rates Held to 6.9 Percent Increase Sweetwater Authority’s Governing Board adopted its 2003/2004 Budget at a public meeting August 27. Included in the $38 million budget was a 6.9 percent rate increase to cover increased costs to purchase water, comply with regulations, enhance security and conduct business.

The approved increase, effective September 1, covers less than half of proposed new costs. Several projects were deferred, canceled or restructured to keep pricing as low as possible. The Board also approved the use of budgetary reserves to avoid additional charges. The approved budget allows the agency to continue its record of leadership in serving its customers, said General Manager Dennis Bostad.

Ongoing capital funds are provided to regularly replace water mains and water meters, maintain reservoirs and facilities, and continue air and water quality monitoring studies. New capital projects include treatment plant and security improvements, a new well, improved information systems, and new pipeline projects.

The rate increase equates to less than 3 cents per hundred gallons of water. Most homeowners will pay less than $3 extra each month ($5.22 more for 27 billing units of water, billed bimonthly).

“Over its 26-year history,” said Director of Finance Hank Gaus, “Sweetwater Authority has protected its existing water sources, improved its infrastructure and developed new local water supplies, making hard choices that have protected its customers.” Gaus and other managers warned that water costs would continue to increase across the region, across the nation, and throughout the world. “This is a difficult budget, but just one of many to come,” said Board Chairman James Doud. “Drinking water standards are getting more stringent. New sources of water cost more to develop and produce, and there are competing demands for existing water. Anyone who opens the newspaper knows that today’s water decisions are difficult.”

Doud encouraged customers to stay informed about regional water issues by following news accounts and visiting water agency web sites. Detailed rate charts are published at this website.
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