Town Of Estes Park Proposed Water Tap Fee Increase
A proposed modification of the Town of Estes Park’s (“the Town”) Connection Charges (water tap fees), resulting in an increase affecting such fees, will be considered by the Town’s Board of Trustees at a public hearing. Any water customer of the Town may appear, either personally or through counsel, at the public hearing to provide testimony or comment regarding the proposed modifications.
This hearing will be held at:
TIME: 7:00 p.m.
DATE: Tuesday, April 22, 2008
PLACE: Town Board Room at Town Hall, 170 MacGregor Ave., Estes Park, Colorado
All new customers who request water service are required to pay Connection Charges (tap fees). These one-time charges are a way for the utility to recover a part of the cost for system capacity and water rights obtained for new customers.
There are two components within the Town’s Connection Charge: a System Development Charge (SDC), and Water Rights Fee. The current SDC portion of the Residential Connection Charge has not changed since 1995; that fee is now $1840 and is proposed to increase to $4,940. The water rights portion of the Residential Connection Charge will remain $5450. The total proposed Residential Connection Charge is $10,390.
In 2007 HDR Engineering was hired to review the Town’s System Development Charges and make recommendations. HDR’s recommendations were based on:
1. The planning and engineering design criteria of Estes Park’s water system
2. The actual cost of the existing assets
3. Future capital improvements related to growth
4. “Generally accepted” ratemaking principles
The HDR study recommended that the System Development Charge for water rights be reviewed annually and adjusted if necessary using the Engineering News Record (ENR) Construction Cost Index. Adoption of the new System Development Charges recommended in the study will provide multiple benefits to Estes Park Water Department in creating equitable and cost-based charges for new customers connecting to Town’s water system. The HDR Water System Development Charges and Water Rights Fees Study from December 2007 is available on the Town’s website at here.