We are lucky to live in an area with caring neighbors and a unique culture nestled in a valley with stunning vistas of our natural environment. While often overlooked, infrastructure buried beneath our feet and hidden behind our walls is critical to our continued existence – our water and wastewater systems.
The Town of Jackson’s water system includes miles of pipe that delivers water from three tanks fed by eight groundwater wells. Our wastewater treatment facility – built in 1970 – enables the Town to collect, treat and release 5 million gallons per day.
In the next decade, the Town plans to make more than $22 million in necessary system upgrades to keep high quality, reliable water flowing to homes and businesses. Among other projects, these improvements include adding another well and storage tank to the system and upgrading/replacing pipes and valves along Gregory Lane and North Millwar
Similarly, the Town’s wastewater system requires maintenance and investment to keep functioning properly; protecting the environment most of us live here to enjoy. In the next 10-years, the Town plans to invest more than $11 million in upgrades at the treatment plant.
Making Ends Meet
As an industry best practice, and to keep sufficient funding for critical infrastructure, water and wastewater utilities across the country periodically perform rate and fee studies. These studies:
Perform a financial analysis on the utility’s cash flow
Analyze any outstanding debt
Incorporate current and future capital improvement and maintenance needs
Identify the cost of providing service for each customer type and group
Recommend updates to how utilities charge for service and what utilities charge for service
Late last year, the Town hired Raftelis, an independent financial consultant specializing in water and wastewater rate and fee studies for communities and utilities across the country. Raftelis is charged with evaluating the Town’s current rates and fees and designing a rate structure that:
Equitably recovers the cost of services, which balances multiple objectives, in proportion to the impact of the service demands of customers.
Maintains affordable access to essential water and sewer services.
Generates sufficient revenues through rates and fees to fully and sustainably support the Town’s water and wastewater utility systems.
Community Involvement
From the beginning, the Water Rates study has benefitted from a group of residents and stakeholders who together form the Citizen Review Committee. Meeting a half-dozen times to learn about the water and wastewater system, Town finances, concepts around rate setting methodology, and reviewing rate systems from similar communities across the Mountain West, this group of stakeholders represents a variety of customers. The insights they have provided and preferences they shared have contributed significantly to the consultant’s work designing a rate structure that is fair, equitable and maintains affordability.
Next Steps
Town staff expect to present the findings of the rate study and recommendations to Town Council later this summer, but before then, the community is invited to participate in one of two workshops to learn more about the process, provide feedback, and share perspectives:
Tuesday, June 30 | 1-2:30 p.m. and 5:30-7 p.m.
Jackson Town Hall
150 E Pearl Avenue
Each workshop will feature identical content. To participate virtually from the safety and comfort of your home, visit www.jacksonwy.gov. A video of the workshops will be posted on the Town website after the session.
For more information, contact Community Engagement Specialist Susan Scarlata at sscarlata@jacksonwy.gov.
What is a water and wastewater rates study?
As an industry best practice, and to keep sufficient funding for critical infrastructure, water and wastewater utilities across the country periodically perform rate and fee studies. These studies:
Perform a financial analysis on the utility’s cash flow
Analyze any outstanding debt
Incorporate current and future capital improvement and maintenance needs
Identify the cost of providing service for each customer type and group
Recommend updates to how utilities charge for service and what utilities charge for service
Why do we need one?
With so many changing variables, it is healthy for utilities to perform rate studies around every five years. The last time the Town of Jackson performed such a study was in 2014.
Who is conducting the study?
The town has hired Raftelis, a consultant that specializes in performing these sorts of financial analyses for utilities across the country. The firm’s founder, George Raftelis, literally wrote the book on water and wastewater rate setting for utilities, that is currently in its 7th edition published by the American Water Works Association.
What does the Town’s water and wastewater infrastructure consist of?
The Town of Jackson’s water system includes miles of pipe that delivers water from three tanks fed by eight groundwater wells. Our wastewater treatment facility – built in 1970 – enables the Town to collect, treat and release 5 million gallons per day.
What does it take to maintain these systems?
Like anything that gets daily use, proper maintenance is necessary to keep our water and wastewater systems performing at the peak. In addition to maintenance, the Town is planning necessary upgrades and enhancements over the next 10-years to keep up with demand. For both systems, these capital improvements will require more than $33 million in funding.
How are our water and wastewater rates calculated today?
The Town’s water and wastewater rates include two components – a base charge based on the size of the meter and a volumetric charge based on water use.
A typical residential customer with a ¾” water meter pays a $7.22/bill base charge and $2.12 per thousand gallons used. That same customer also pays a $7.05/bill base charge for wastewater, plus $2.27 per thousand gallons used.
A typical residential customer with a ¾” water meter using 10,000 gallons of water and sending 5,000 gallons of wastewater to the treatment plant pays around $44 each billing cycle.
Will the way our water and wastewater rates are calculated change in the future?
It is possible – the Town directed the rate consultant to design a rate structure that accomplishes three things:
Generates sufficient revenues through rates and fees to fully and sustainably fund the annual requirements to support the Town’s water and wastewater utility systems providing expected service levels.
Equitably recovers the cost of services, which balances multiple objectives, in proportion to the impact of the service demands of a customer class and/or group of customers that may be practically administered by the Town.
Maintains affordable access to essential water and sewer services while meeting other Town utility rate pricing objectives.
In addition, the Citizen Rate Committee – a diverse group of volunteers empanelled to be key advisors to Town staff and throughout the study process – has asked that any new rate structure be designed to:
Minimize customer impacts
Provide rate and revenue stability
Maintain affordability
Do you expect rates to increase?
It is likely that rates will increase to make sure valuable infrastructure can be maintained and investments can be made in both systems to ensure continued reliability. Water rates in the Town of Jackson have been unchanged since 2014.
How can I get involved in the study?
Town staff expect to present the findings of the rate study and recommendations to Town Council later this summer, but before then, the community is invited to participate in one of two workshops to learn more about the process, provide feedback, and share perspectives:
Tuesday, June 30 | 1-2:30 p.m. and 5:30-7 p.m.
Jackson Town Hall
150 E Pearl Avenue
Each workshop will feature identical content. To participate virtually from the safety and comfort of your home, visit www.jacksonwy.gov. A video of the workshops will be posted on the Town website after the session.
Where can I go for more information?
For more information, contact Community Engagement Specialist Susan Scarlata at sscarlata@jacksonwy.gov.