Halligan plan threatened in city council water war

By Dan MacArthur
Fossil Creek Current

The Fort Collins City Council could be among the first to benefit from new water rates that will reduce the cost for increased use, because it could take a torrent to dowse the flames arising from a split vote.

The council on March 21 voted 4-3 to scrap a rate structure approved two weeks earlier that favored residents consuming less water. Instead, the council adopted an amended rate structure increasing the base fee for all users while giving a break to those using increasing amounts of water.

The action provoked an angry response from the council minority of Ben Manvel, Kelly Ohlson and David Roy. Ohlson pledged to use the decision as a weapon to block reservoir expansions planned by the city and its partners.

"What we have here is a pretend conservation rate," objected Ohlson. He promised to press his protest with regulators responsible for approving expansion of Halligan and Seaman reservoirs.

The U.S. Army Corps of Engineers is preparing an environmental impact statement on the proposal, and the Corps' analysis gives great weight to the applicants' water conservation measures.

"That argument is just not accurate to me," countered council member Kurt Kastein. Seeking clarification, he asked Ohlson, "You will stand in the way of Halligan for this?"

"Yes," Ohlson replied.

"This is not an unfair or punishable fee," countered council member Karen Weitkunat, who proposed the amended rate structure. "I think it's fair and equitable for all water users."

The conflict reflects the council's struggle to adopt a balanced rate structure that encourages conservation without placing too big a burden on those with large lots to irrigate.

Previously the city assessed a $15.57 base fee on single-family homes and uniform rates regardless of how much was used. But to encourage conservation following the 2003 drought, the council adopted a new rate structure with a $12.72 base fee and five tiers, with rates rising from 20 to 33 percent between each tier based on the amount of water used.

Mayor Doug Hutchinson said that resulted in $1,000 to $2,000 monthly water bills for some irrigating larger lots.

In response to increased conservation, as well as complaints about excessive costs, the council a year later revised water rates again. The resulting rate structure retained the $12.72 base fee and trimmed the tiers to four with a 20 percent differential between each one.

This year the council decided to reconsider the rate structure again and settled on the one preliminarily approved March 7. That structure would have imposed a $9.54 base fee and three tiers with a 15 percent differential between each tier.

But the rate structure ultimately adopted boosted the base fee back to $12.72 to reduce rates across the board from those in the previous proposal. Single-family residential customers as of May 1 will pay $1.87 per thousand gallons for the first 7,000 gallons, $2.15 per thousand gallons for the next 6,000 gallons and $2.48 for each additional thousand gallons beyond 13,000 gallons.

Dissenters cried foul at the majority's amendment to the previously approved rate structure. "I thought we had a compromise that was fair and reasonable," said Manvel.

The greater the monthly fee, he said, the less incentive to conserve. Further, Manvel said, there is an issue of equity. "All the small bills will increase so the big bills will decrease. I don't think that's fair."

"There's no question we're moving to a less-conserving rate," he continued, suggesting the council's action would resonate with the regulators reviewing the Halligan expansion.

The majority, however, insisted that the tiered rate structure still promotes conservation while providing a minimal break for those with larger lots.

"This is a very small change," said Weitkunat. "I am deeply disturbed this is being used as a tool to try to jeopardize Halligan."