A study is recommending significant increases to the rates residents would pay for water in the town of Monument.

Kevin Burnett, a consultant with Willdan Financial Services, told town councilmembers on Monday that Monument’s water enterprise was operating on a spending deficit that would deplete its reserve by 2029.

“The status quo is not an option for us at this time,” he said.

The preliminary plan presented would raise the base water rate by 10% for five consecutive years. Even with the increases, Burnett said the town would not reach its target reserve amount.

Monument currently charges about $112 per month for the typical residential single-family home consumer, which corresponds to 6,000 gallons of water usage. In the consultant’s presentation, the rate ranked at the top among other water utilities such as Fountain, Colorado Springs and the Triview Metropolitan District.

The ranking had lots of caveats. Mayor Mitch LaKind pointed out that many of the comparable rates did not include other fees that increase consumers’ overall bills.

LaKind said that a smaller water provider fully dependent on wells could also not be easily compared to larger providers or those with access to renewable water sources.

“We’re definitely not the most expensive,” said Councilman Steve King.

The idea of multiple rate increases still rankled. The last time Monument raised its rate was five years ago.

“We can’t just keep going back to the ratepayers every year because we can’t rein in our spending,” said LaKind.

Increased maintenance and operations costs are driving much of the deficit, according to the study.

“This infrastructure is going to get more and more expensive to maintain,” said Councilman Marco Fiorito.

Solving the problem of aging infrastructure could also be pricey. The study included an estimated cost for updating the town’s water system and how ratepayers might have to bear those costs.

One scenario calls for collaboration with other agencies to build new water treatment infrastructure at a cost of approximately $25 million. The average residential ratepayer would pay an estimated $163 more on their monthly bills.

Another scenario, in which the town takes on the project, would increase the rate by $138, according to the study. A new or expanded reservoir would increase a residential consumer’s bill by $246, and the most expensive prospect, leasing water from another agency, would increase bills by $306.

The council directed town staff to gather more information about its existing operation and maintenance costs. Monument has not yet scheduled any discussion or vote on changing water rates.