The City of Laramie needs to make significant improvements in it's water and wastewater infrastructure.
The Current Water System
15 miles of pipe were installed prior to 1928, and most were installed before 1950
260 miles of pipeline need to be maintained
The majority of the system is cast-iron pipe
Soils in Laramie are corrosive to metal pipe
The minimum benchmark for replacement is four miles of pipe per year, but the average replacement is one mile per year
The Current Wastewater System
160 miles of wastewater pipe need to be maintained
The age of the waterwater pipes mirrors that of the water system (most installed prior to 1950)
The minimum benchmark for replacement is 3.5 miles per year, but the average replacement rate has been less than one mile of pipe per year
The Cost of Infrastructure
Following a competitive request for proposal (RFP) process, in August 2008 the City of Laramie engaged Red Oak Consulting (Red Oak) to conduct a water and wastewater cost of service rate study. Red Oak’s scope also included identification and comparison of the City’s utility performance against industry benchmarks and facilitation of stakeholder committee meetings.
The utility financial plan indicated the need to increase water and sewer revenues between 15% and 20% annually over the next five years, through 2013. Such increases are required to fund increasing operations and maintenance expenses, fund the capital replacement program, satisfy debt service coverage requirements, and provide adequate reserves. Additional revenue requirements will, in turn, result in the need for annual increases in water and sewer rates.