Rod Twain, a member of the board of directors for the Clear Creek Community Services District, submitted a report supporting a water rate increase at a meeting of the board Thursday, Oct. 3. He serves on the Committee for the consideration of potential water rate increases for the Clear Creek Community along with Burt Cooper, a member of the board, and he wrote the report on behalf of the committee.
He listed several reasons for an increase in water rates:
- Maintenance of the current system until a new system is in place. The district developed a plan with the help of Pace Engineering in Redding, California to replace its old water system. The plan was needed to be eligible for grant funding from the state of California. However funding may not be allocated for the project for three or more years, and the construction of the new system will also take time.
- Building capital reserves to support the new system. As an example, Twain wrote the district would be required to save $26,210 in order to replace two items which are a part of the new water system that have a 15 year life expectancy.
- The purchase of land needed for a water tank to store water for such emergencies as wildfire is part of a mandate. Although the cost of the tank would be included in the grant for the new water system, the district must provide a site as well as a security fence.
- Cover the cost of a temporary water delivery method as areas lose water while pipes are installed during the construction of the new water system.
- A need to insure the new system once constructed.
The committee recommends a $3 increase would make the cost of water service in Clear Creek $39 a month. In the report Twain wrote that the district needed to consider the current rate of inflation in any project estimates, which is 3 percent yearly. He also pointed out that the inflation rate for some building materials due to tariff wars was even higher. For example, the cost of steel rose 14 percent last year.
“Future costs for the project may increase significantly,” he wrote.
For a full copy of the report, call the Clear Creek Community Services District at 256-3096.