The town of Hideout has been operating its water fund at a deficit. Last fiscal year, it cost about $44,000 more to provide water, sewer and stormwater utilities than the town collected in utility fees.
If the town sets aside part of its revenue for a surplus fund, the deficit is even larger – nearly $245,000.
That’s according to a recent rate analysis conducted by public finance advisor Fred Philpot.
He recommended several rate adjustments to help Hideout get out of the red, and the town council adopted the first of several proposed changes at a special meeting March 24.
Philpot proposed an 80% increase in the sewer rate, from $28.60 to $51.30 per month.
Hideout Mayor Ralph Severini said he favors the change.
“I looked at about 10, 15 towns, and the mid-50s is about average across the towns for sure,” he said. “This kind of brings us up to probably what we should have been paying.”
Councilmembers voted to raise the sewer rates, and Severini said the changes should go into effect “as soon as possible.”
Later this spring, the council will consider adjusting culinary water, stormwater and “standby” fees as well.
“Standby” means ensuring that water will be available for a property when needed. It applies to Hideout’s hundreds of future homes. If the town follows Philpot’s recommendations, standby fees will vary based on whether or not developers own water rights.
Philpot recommends lowering the base rate for water from $94.90 to $79.12. Residents must pay extra if they use over 10,000 gallons in a month.
Stormwater fees would increase from $6 per month to $16.21.
Those proposed changes will be on the agenda for the April 9 town council meeting.
Jan McCosh, the town administrator, said she has some concerns about what the new rate structure could mean for low-income residents.
“I have been sending them notices of our utility increases; I’m a little worried about the effect it will have on our affordable communities,” she said. “They’re pretty high users of water, and so they’re going to get hit with a pretty good increase.”
Separately, McCosh said Hideout is also considering how to enforce parking and other commonly violated town rules.
“We’d start with parking and then move to others, like trash left, just various other things that we get complaints from residents on,” she said.
She said the town would likely create a contract with Interstate Parking, which provides parking enforcement at resorts like Deer Valley and Alta. The cost of a parking ticket is yet to be determined but will likely be at least $200.
