COEUR d'ALENE - Water rates will experience a bump beginning March 1.
The city of Coeur d'Alene agreed to increase user and capitalization fees for Lake City water users, the first water increase in three years.
The capitalization fees - one-time hook up costs - essentially pay for new growth while user fees primarily pay for the cost of providing services, said Jim Markley, water superintendent.
"Those have gone up and it's reflected in the rates," he said.
The council voted 4 to 1 Tuesday in favor of the stepped increases.
Currently, the typical residential customer using 10,000 gallons in a month pays $13.71 every month. Beginning March 1, that bill will increase around 40 cents, to $14.07 From 2014 to 2018 it will be around $14.80.
Residential capitalization fees will rise from $2,045 to $2,452, a $407 increase. City staff reports estimated that fee is expected to generate between $750,000 in 2013 and $1.4 million in 2018 based on 350 to 510 new connections a year.
The city of Post Falls typically charges residential users $19.20 a month for 10,000 gallons and $2,275 for capitalization hook ups.
The Hayden Lake Irrigation District, using a differing formula than Post Falls and Coeur d'Alene, charges about $17.91 a month for 10,000-gallon residential users during summer months.
Capitalization fees pay for capital projects for the water department such as the new well the city is constructing at Atlas Road and Hanley Avenue - the city's 10th well.