City Council Minutes 1999 12 21 - Laserfiche WebLink

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Howard explained that the absolute raw costs are going up about 40-50% and the City is passing along half of that increase. In addition, other fees are being reduced. If these numbers are correct, anyone developing in the Colorado Tech Center would be at a break-even point in 3 V2 to four years. In order for the City of Louisville to continue financially strong, growth should continue to pay its way. He expressed support for the increase in light of the fact that the City is only passing along half of the increase. Davidson explained that a water tap fee pays for its proportional share of the water treatment plant in addition to the cost to purchase water rights to provide water for that tap. A water user coming on board, although paying the going rate for acquiring a water share, is actually receiving the pipeline and water treatment plant at ten-year old prices. Keany asked for clarification that the Mayor's suggestion is to increase the water tap fee from $11,400 to $13,400. Davidson agreed. He stated that the other tap fees would increase proportionally. Keany agreed with Lathrop that Louisville is losing development to surrounding cities that offer the incentive of lower tap fees. Davidson asked who should be charged if the water tap user is not charged. He explained that the City of Louisville has, historically, been on the high end. The City purchases a more reliable source of water which is, therefore, more expensive. Lathrop agreed that Colorado Big Thompson water rights could reach the $10,000 per share range. He wondered if Council would consider lowering the tap fees in the future, should the cost of water decrease. He stated that Council is anticipating an increase and questioned whether Council would react if the market went the other way, leaving the City on the high end of the market. Davidson replied that if the costs decrease, the City should lower the tap fee. He explained that construction costs and the cost to purchase raw water have not gone down since he has been on Council. Mayer expressed concern that the fee listed for the City of Boulder is misleading. He explained that the amounts listed may be the formal water tap and sewer tap fees, however, the City of Boulder distributes costs across several different fee categories and some of the costs are listed as development excise fees. He stated that when the City of · Louisville first considered building a pipeline in 1992, the estimated cost for Colorado Big Thompson water rights was $1,600. He explained that this amount has quadrupled since then and he did not believe that there would be a reduction in the cost of raw water with demands from the increasing growth in the metro area. He stated that the reason the City of Louisville has been able to lower fees to the residents is because the City has been paying off its debt by making growth pay its own way.