CB water and sewer rates expected to rise significantly

Some infrastructure installed in the 1870s… “Time to pay the piper”

By Mark Reaman

Residents of Crested Butte will likely see a significant jump in their utility bills starting in January. The town council last week started down the path of making major long-term improvements to the water and wastewater treatment infrastructure in town that will result in an initial 30-percent increase in utility rates. The expectation is that consumers will see another $28 per month on top of the current $71.50 monthly rate for water and sewer service. Regular rate increases should be expected in the future so that rates might be doubled by 2027.

In a council work session on July 6, public works director Shea Earley and Leanne Miller of Carollo Engineering explained to councilmembers that to replace all of the town’s water and sewer infrastructure at once would cost between $54 and $75 million. 

“The town has never really overhauled any of our facilities,” explained Earley. “We have piecemealed our needed projects. That has worked but there is a value to maintaining and keeping the system healthy instead of replacing it all at once.”

To that end, the town will spend about $15-$20 million depending on regulatory requirements over the next decade with about $10 million of the money being spent in the next couple of years. A $7.9 million project to improve the wastewater infrastructure along with a $1.3 million project to replace the water intake tunnel, piping and valve at Lake Irwin top the list. The town is still using the water intake tunnel at Lake Irwin that was installed in 1877. Ulysses Grant was president of the United States until November of that year.

“Rates will have to go up substantially to pull this off,” said Crested Butte finance director Rob Zillioux. “Even if the $10 million needed now was paid off over 20 years it will result in a $28 per month increase. This infrastructure is under an enterprise fund and those need to be balanced and stand on its own. We can’t borrow money from the general fund to pay for it.” 

Zillioux said that as improvements to the town infrastructure continue, citizens should expect their rates to double over the next five to seven years. “We are doing this for the Fourth of July crowds in town and not the population that is here the second week of November,” he said. “The reality is that we have been kicking this can down the road for 100 years.”

Zillioux and Earley said the staff is exploring the possibility of obtaining grants to help offset the costs but those are not in great supply. “Maybe there will be some grant money if the feds pass their infrastructure bill,” Zillioux said. 

Zillioux said that Crested Butte rates are relatively low compared to other mountain communities and in his recent research he said similar communities are facing the same situation and utility rates are expected to rise almost everywhere.

Mayor Jim Schmidt expressed some concern at the dramatic rate increase needed and asked if all the proposed projects were urgent. “Wow. The $28 is making my head spin. A 30-percent increase is huge,” he noted.

“The Irwin and wastewater projects are the most important projects essential to the town infrastructure and shouldn’t be deferred,” responded Earley. “The Irwin valve gives our guys trouble now. If the Irwin valve gets stuck in an open position and we can’t control it, we would have no control over the lake water. If it gets stuck in a closed position, we would soon not have enough water for town.”

“Some things could be deferred for a bit but it is time to address the issue,” said Miller.

“At some point you have to pay the piper and that time is now,” added Zillioux. “Gunnison, Telluride, Mt. Crested Butte are all seeing huge rate increases.” 

“It is better to make an investment now rather than leave our citizens without potable water,” said councilwoman Jasmine Whelan. 

“It will be a very good investment in the long-term,” agreed town manager Dara MacDonald. 

During the July 6 meeting the council entered into a contract to start engineering work on the Lake Irwin improvement project. A similar agreement is expected to be approved at the July 19 meeting for wastewater treatment plant improvements.