The City of Cheyenne Board of Public Utilities (BOPU) approved the Water and Sewer Department recommended Fiscal Year 2017 Budget at the Special Budget Board Meeting that was held on Monday, May 2, 2016. The approved and recommended budget now goes to the Governing Body.
The BOPU is planning $7.40 million in water and sewer projects for the FY 2017. These projects are needed to meet current demands for water and sewer services and to be able to continue to provide service into the future. Projects include: $3.47 million of water main rehabilitation projects, $1.91 million for sewer collection main projects, $1.37 million for water development and delivery projects, and $0.66 million in water and water reclamation plant projects.
Operations and maintenance of the water and sewer systems is expected to cost $18.47 million. Capital assets/equipment is expected to cost $2.06 million and debt service is expected to cost $13.03 million.
Funding for the water and sewer system comes from water and sewer sales and fees, grants, water and sewer enterprise fund cash and loans. Services and fees are expected to generate approximately $35.70 million. The BOPU anticipates $5.25 million will come from cash and loan proceeds.
Included in the recommended budget is a 2 percent rate increase for water services, water and sewer connection fees, system development fees, pump station development fees, and related fees beginning January 1, 2017. Under the recommended rates, the average monthly water bill of 8,000 gallons per month will increase $0.79. The sewer rate includes a 3.8 percent rate increase with an additional $0.10 per 1,000 gallons to pay for the debt service on the Phase One Southern Sewer Interceptor Main project. Under the recommended rates, the average monthly sewer bill for 4,000 gallons per month will increase $0.85. All revenue generated from water and sewer sales are invested back into the construction, maintenance and operation of Cheyenne’s water and sewer systems.