January 4, 2018

2018 Budget and Water Rates

The Board of Water Works Trustees approved a seven percent rate increase for most customers at their regular monthly meeting in October meeting.  The 2018 rate increase equates to an additional $2.18 per month for water charges for the average four-person household (using 7,500 gallons) in Des Moines.  In addition, a five percent increase for the Wholesale With Storage rate was approved.  The rate increases will result in approximately $2.6 million of increased water revenue for 2018.  New water rates will go into effect April 1, 2018.  A complete listing of Des Moines Water Works’ 2018 water rate structure is available at  www.dmww.com/about-us/announcements.

The Board of Trustees subsequently approved the 2018 calendar year budget at their November meeting, which includes revenue from 2018 rate increases for all service areas.  The 2018 budget includes $63.9 million of operating revenue.  The 2018 operating expenses are budgeted at $43.4 million, an increase of $1.7 million from 2017, primarily due to increases in labor and benefits and treatment plant maintenance expenses.  Capital infrastructure costs are budgeted at $33.2 million. In addition to operating and capital expenditures, $4.3 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 to its 500,000 central Iowa customers.

Posted by: Laura Sarcone No Comments
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