Des Moines Water Works staff has proposed Des Moines Water Works’ 2017 calendar year budget, which includes revenue from 2017 rate increases for all service areas. The Board of Water Works Trustees will hold a public hearing for the proposed 2017 budget on Tuesday, November 22, 2016, at 3:30 p.m. at Des Moines Water Works’ general office, located at 2201 George Flagg Parkway, in Des Moines.
The Board approved a 10 percent rate increase for most customers at their October meeting. The rate increase equates to an additional $2.78 per month for water charges for a four-person household (using 7,500 gallons) in Des Moines. Alleman customers will see a 15 percent rate increase based on capital improvements made to their water system. In addition, a five percent increase for the Wholesale With Storage rate was approved. The rate increases will result in approximately $3.3 million of increased water revenue for 2017. New water rates will go into effect April 1, 2017. For a complete listing of Des Moines Water Works’ 2017 water rate structure, visit www.dmww.com/about-us/announcements.
The proposed 2017 budget includes $62 million of operating revenue. Additional funding from outside entities of nearly $16 million will fund joint projects.
The proposed 2017 operating expenses are budgeted at $41.6 million, an increase of $1 million from 2016, primarily due to increases in labor and benefits and plant maintenance expenses. Capital infrastructure costs are budgeted at $29.6 million. Additional funding sources of $16 million leaves approximately $13.6 million of capital projects to be funded from the utility’s revenues. This compares to approximately $10.7 million of capital projects budgeted from the utility’s revenues in 2016. In addition to operating and capital expenditures, $5.3 million will be spent on debt repayment.
As the Board moves toward greater investment in the water utility’s infrastructure, rate increases and annual budgets will be more consistent with the challenges of producing and delivering safe drinking water.