Dolores has approved water and sewer rate increases to replace 75-year-old water lines and secure low-interest financing for the overhaul.
After a public hearing, the Dolores Board of Trustees adopted new rates through 2030 to finance Phase 2 of the $4.3 million main line replacement project along First through Sixth streets.
Officials have repeatedly described the work as urgent and overdue, citing frequent breaks that sometimes leave residents and businesses without water for hours.
“We've been kicking this can down the road for literally 75 years, both rate increases and replacing these lines. So, the ones around Sixth Street and farther up First Street are the really ones,” said Town Manager Leigh Reeves.
The hearing was held during the board’s 5:30 p.m. regular meeting Nov. 10 at Town Hall, after weeks of budget and water-rate discussions this summer and fall. The most recent increase added a $10 flat-rate hike in January.
“It’s a painful adjustment, but I think we can all see it’s pretty necessary,” town treasurer and clerk Kelley Unrein told the board at an October workshop. Officials said higher rates are tied to Dolores’ ability to qualify for a State Revolving Fund loan for Phase 2. A full system overhaul could cost $14 million later.
“We know it’s not fun, we know no one wants to pay more money, but if we don’t do a water-rate increase, and consistently keep it on schedule, we can’t get the loan, keep the loan and it’s going to cost taxpayers significantly more money over the lifetime of this project,” Unrein said.
Beginning Jan. 1, water rates for in-town customers using 5,000 gallons will increase from $44.34 to $47, a 6% hike or $2.66 monthly. For customers outside town, the base rate will rise from $58.26 to $61.76.
Additional increases are scheduled: 5% in 2027, 4% in 2028 and 3% in both 2029 and 2030. Those percentages apply to base rates and tiered-usage charges.
Sewer rates will rise in 2026, with in-town customers paying $39.50, up from $38.35. Out-of-town rates will go from $60.33 to $62.14. Sewer charges will then rise automatically by 3% each year from 2027 through 2030.
“I mean, think about what they're made of. What was the technology 75 years ago, right?” Reeves said. “So, we probably won't do another phase for quite a while.”
The current system is a spur system, where the main line runs along Central Avenue and water lines branch off, creating dead ends.
Reeves said the goal is to move toward a closed system and eliminate dead-end spurs. A closed system improves water pressure and efficiency. Eliminating dead ends creates circulation and makes the water a better product, Reeves added. She stressed this is primarily a water-quality project.
| Category | Current rate | New rate | Percent change | Effective date |
|---|---|---|---|---|
| Water in town, 5,000 gallons | $44.34 | $47.00 | 6% | Jan. 1, 2026 |
| Water in town, 5,000 gals. | $44.34 | $54.45 | 22.8% | 2030 |
| Water out of town, 5,000 gals. | $58.26 | $61.76 | 6% | Jan. 1, 2026 |
| Water out of town, 5,000 gals. | $58.26 | $71.54 | 22.8% | 2030 |
| Sewer in town | $38.35 | $39.50 | 3% | 2026 |
| Sewer in town | $38.35 | $44.46 | 15.9% | 2030 |
| Sewer out of town | $60.33 | $62.14 | 3% | 2026 |
| Sewer out of town | $60.33 | $69.94 | 15.9% | 2030 |
During the hearing, some residents asked how higher rates will affect older residents, who receive a discount. Reeves said when the town implemented the $10 flat-rate last year, seniors were exempt. Starting in January, seniors will see about a 4% increase.
“It will be an increase for them,” Reeves said, adding that the discounted structure seniors receive is still applied.
“This is a project where in some places we are replacing 75-year lines and in some places, 50-year lines,” Reeves told board members at the October workshop, pointing to recent ruptures near Ninth Street and Hillside Avenue that forced temporary shutdowns.
Dead-end lines, she added, can complicate fire protection by limiting flow to hydrants and can lead to boil-water notices when breaks occur.
She also stressed the cost of waiting.
“If I could do the whole project now, I would, but I can’t,” she said. “Because now it’s $14 million. In another 10 years, which is probably when we do the next phase, it’s probably going to be $24 million. It’s only going to get more expensive. It’s not ever going to get cheaper.”
The SRF loan requires Dolores to maintain a 110% debt service coverage ratio – meaning the water fund must bring in at least $1.10 in dependable annual revenue for every $1 owed in debt.
Reeves said the town’s disadvantaged community status has recently been recertified, which will help Dolores secure a lower-interest loan and could lead to a portion of the debt being forgiven once the project is underway.
“Our annual loan payment on a 30-year loan is going to be somewhere around $100,000 a year,” she said.
The town has already received a 50% match from the Department of Local Affairs for the roughly $500,000s design portion. Dolores’ share of that cost will be rolled into the larger loan.
Reeves said engineering for Phase 2 is about 90% complete. Town staff are preparing request-for-proposal documents now, with a goal of applying for the SRF loan in January and seeking additional energy impact grant money.
“We are shooting for next spring to start this project,” Reeves said. “That’s the whole idea.”
Bid documents will likely go out in January or February, she said. Contractors will tour the project, submit bids and qualifications, and town staff will recommend a contractor to the board.
“It’s not always about who’s the cheapest,” Reeves said. “Sometimes it’s about most qualified. Most of the time, it’s a combination of those two things.”
Final contracts will come back to trustees for approval in a public meeting.
