Colfax eyes three percent rate hikes

A proposal to bump water and sewer rates in Colfax by three percent a year over the next five years was delayed July 19 when city council members requested more information on what the hikes would produce.

City Supervisor Carl Thompson presented the proposal which essentially extends the rate plan prepared by consultant Ashley Emery. Thompson worked up the rate hike extension after the city council earlier this year opted again not to hire a consultant to determine what the rates should be after Emery’s plan concludes.

The three percent hikes are expected to generate $25,000 to $30,000 more revenue. City Treasurer Mark Clinton said the sewer fund now has about a $70,000 cash surplus, and the water fund has $140,000.

Income from utility payments is transferred each year into a capital fund, which is now at approximately $400,000.

One of the chief cost concerns for the city water department is the aging pipeline from the Glenwood wells, the main source of city water.

According a readout scale presented the council, the rate hike for a one-inch service line, now $22.40, would jump to $26.55 over the five years. Basic charge for sewer rates, now at $22.60, will increase to $25.40.