Casper Council to Discuss Future Water and Sewer Rate Increases

At the Tuesday night work session, the City of Casper council will consider approving future rate structures to increase water rates and associated revenue by 5%, and sewer rates by 6%.

Per a memo to council, water and sewer rates are considered and approved by council on a biennial basis. The rates for 2024 and 2025 were set on December 19, 2023.

Concerning the water and sewer funds, council will consider the following factors:

1. A 4% rate of inflation for operation and maintenance costs for FY25 to FY26

2. A 4% inflation in water supply from the Central Wyoming Water System

3. The water model assumes that $12 million in loan funding and $5 million in Grand Funding for the $17 million City Reservoir replacement project will be obtained by FY26.

4. One Cent funding is assumed at $2 million for water and $600,000 for sewer annually. The Chief Operating Officer recommends that counil consider eliminating One Cent subsidization of these enterprises. The rate model assumes an elimination of One Cent Funding in FY 29, if recommended and approved by council.

5. Rates developed by this model include future rate adjustments needed to fund new and replacement capital facilities based on the 2017 Capital Improvements Plans, including funds obtained through system development charges, depreciation, reserves, One Cent funding for FY26-28, and outside grants/loans.

According to the memo from Tom Brauer, the Chief Operating Officer, along with Wastewater Operations Officer Krista Johnston and Water Operations Officer Ethan Yonker:

"Casper's average retail residential water and sewer bills are very favorable in comparison with other entities in the region. It needs to be emphasized that many of the comparable entities have utilized other funding sources, such as optional Sixth Cent Capital Facilities Taxes to help finance major upgrades to their water and wastewater systems."

See the memo and other documents related to the potential rate increases here.