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City of Rifle Water Conservation Plan
<br />Final Report -July 2008
<br />The rates and fees collected historically have been inadequate to fund the entire cost of
<br />system operation, maintenance, and capital replacement. Over the past 5 years, or so, the
<br />City has received significant funding from the Colorado Department of Local Affairs
<br />(DOLA) to perform modest improvements to the water system, primarily for asset
<br />rehabilitation/replacement projects. In this regard, an increase in rates and fees is needed
<br />as part of achieving financial sustainability for the water utility. Independent of water
<br />conservation initiatives, the City has been considering modifying water rates in 2008 to
<br />increase revenue.
<br />Table 1-2 summarizes water sales revenues from 2002 through 2007 by general revenue
<br />stream source. The City switched from bi-monthly to monthly water billing frequency in
<br />January 2006. The table indicates that water sales revenues have steadily climbed over
<br />the period. While potable water production has also climbed during this period (see
<br />Section 2.0), it has not climbed as much as revenue. This can be attributed to a rate
<br />increase in 2005, plus improved metering and billing. Improving water use and revenue
<br />tracking will be an important water conservation activity recommended by this plan. The
<br />City has already begun this process by bringing new utility accounting software online.
<br />Table 1-2: Water Sales Revenue 2002 throu h 2007)
<br />Cate or 2002 2003 2004 2005 2006 2007
<br />All standard
<br />billing classes:
<br />residential,
<br />commercial, $ 997 926 $1033 955 $1 170 971 $1314 765 $1693 322 $1984 742
<br />'
<br />industrial, govt,
<br />irr.
<br />CoGen Plant $ 234,493 $114,601 $ 42,190 $ 57,325 $ 56,580 $146,350
<br />Bully Water
<br />h Brant meters) $ 38,684 $ 43,305 $19,462 $ 87,628 $ 80,464 $ 83,292
<br />Bully Water
<br />(vend. Machme) $12,143 $10,577 $15,918 $14,983 $18,424 $ 20,542
<br />Total $1,283,246 $1,202,438 $1,248,541 $1,474,701 $1,848,790 $2,234,926
<br />Annual Change -- -6.3% +3.8% +18.1% +25.4% +20.9%
<br />Table 1-3 breaks-out water sales revenue by customer class for 2007. In general, the
<br />breakdown is as might be expected for a primarily bedroom community with a modest,
<br />growing commercial core and minimal industry. The CoGen plant accounted for 6.5% of
<br />annual water sales revenue in 2007, which was a year in which the plant did not run very
<br />frequently. The CoGen plant, whose use will likely be unaffected by water conservation
<br />initiatives, provides a reliable revenue stream to the City.
<br />Current Water Usa e Policies
<br />The City of Rifle has several codified water usage policies relevant to water conservation
<br />and drought response. These are listed in Division 4 of Article I of Section 13 of the City
<br />of Rifle Municipal code. Summaries of key provisions include:
<br />• City Council may impose water use restrictions as necessary due to water shortages.
<br />• The City Manager, in the event of an emergency that threatens water quantity,
<br />quality, or pressure, when he deems it impractical to wait for City Council direction,
<br />can impose water use restrictions and/or water rationing, as necessary.
<br />SGM # 99055A-388 11 Existing Water System Profile
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