The Coeur d’Alene City Council wants more time to consider a capital improvement plan that would raise water rates. 

Councilors on Tuesday voted unanimously to table the issue and requested a workshop be scheduled. 

“A rate increase may very well be necessary because of future infrastructure needs, but it does matter to the public," said Councilor Christie Wood. "They want to have time to understand it and so do we.” 

Dan Gookin agreed. 

“I want to make sure that if I’m going to raise rates, that the reason for raising the rates is justifiable to the ratepayer we have to answer to,” he said. 

Water Department Director Kyle Marine presented a proposal under which rates would rise to help pay for an eight-year, $84.3 million capital improvement plan. 

Under one scenario to fully cover the cost of the plan, water rates would increase 22% annually from 2025 to 2027. In year one, that would come out to about $5.25 a month more for a home using an average of 12,000 gallons of water. Monthly rates would go up by $6.38 in 2026 and $7.78 in 2027 before the annual increase would fall back to 2% for the next four years. 

Under a second scenario for a reduced capital plan of $68.3 million, water rates would increase 8.6% a year for eight years, which is a little over $2 a month to start and $3.64 in the eighth year. 

Mayor Woody McEvers said he was OK with the smaller hike. 

“That sounds like a good deal to me,” he said. “I paid more than that for butter last month.” 

The increases in rates and capitalization fees are necessary to be able to meet future demand, a city report said. 

In the winter, the city may pump around 7 million gallons a day. But come summer, the city pumps around 35 million to 40 million gallons a day from its 11 wells, with irrigation accounting for nearly 75% of summer water production. 

The city’s water system has more than 22,000 accounts and customer growth is estimated at 1.15% each year, about 300 additional units. 

“As infrastructure and operational costs continue to rise, the current funding model is not sustainable,” the report said. “The system cannot continue to sustain itself or expand without either significant upgrades to infrastructure or major changes in customer usage behavior, particularly in reducing inefficient irrigation."

The annual water fee revenue brings in about $7.9 million.

Marine presented a chart that outlined risks of the reduced capital plan, which included slowing city growth, water pressure issues, possible stormwater flooding, potential water system failures, problems meeting demand and the need for restrictions. 

The Water Department requested a public hearing be scheduled for July 15 and the rates take effect Aug. 1, with annual increases April 1 thereafter.

But Gookin said he needed more time to review the nearly 300-page document detailing the plan presented Tuesday. 

He noted that the word, “could,” was used four times under risks of the reduced capital plan. 

Gookin said he wanted to be able to explain to the public why the water rate hike was needed "as opposed to wanted.” 

Councilor Kiki Miller wasn’t convinced higher water rates would lead to less water being used. She said residents with sufficient incomes would likely not change how much water they'll use at home, but she said those on fixed incomes would be more impacted. 

“I kind of get a sense we’re punishing people who aren’t breaking the rules, aren’t overusing water,” she said. 

Miller said she would like to see something that looks at deterring water use other than by increasing rates. 

    Gookin