Lawrence water rates may be going up more than city leaders anticipated.

City commissioners were told Tuesday evening that current projections call for water rates in 2008 and 2009 to go up by 7 percent per year. That’s up from a projection of 4 percent per year.

“It is disappointing,” City Commissioner Boog Highberger said.

City staff members said the water rates might need to increase, in part, because the last rate projections were made in 2003. Since that time construction costs for water projects have increased at a rate significantly greater than inflation. That has led to higher than expected costs for an approximately $20 million expansion to the Clinton Water Treatment Plant.

Staff members also think that some capital improvement projects need to be built more quickly than planned to provide necessary water service to areas of the community.

The water rate increases would come on top of a 9 percent sewer rate increase – for both 2008 and 2009 – that previously has been projected for sewer service. Much of that increase is related to a new $88 million sewer treatment plant and pipeline system that will be built south of the Wakarusa River.

City commissioners did not approve the water rate increase at their Tuesday night meeting. Instead, commissioners were advised that such an increase may be presented to them as they craft their 2008 budget this summer. Commissioners will need to make a final decision on 2008 water rates by early August.

Debbie Van Saun, assistant city manager, said staff members still were determining whether there was a way to delay some projects to eliminate the need for the full 7 percent rate increase.

“This projection, we think, is the worst-case scenario, if you want to call it that,” Van Saun said.

Highberger said he thinks it might be time for the city to look at adjusting its rate structure to do a better job of encouraging residents to conserve water. Three years ago, the commission changed the rate structure in an attempt to do that.

The city went from a structure where larger water users were paying a smaller per gallon rate for their water to a flat rate structure where water users paid the same amount regardless of their water usage. Preliminary indications are that change has not resulted in significant water conservation, officials with the city’s utility department said.

Highberger said the city might want to consider charging a higher rate for people who use large volumes of water.

“If we could have done something to encourage more water conservation, some of this rate increase may not be necessary,” Highberger said.

In addition to the 2008 and 2009 rate projections, commissioners were provided with estimates on rate increases for water and sewer through 2013. Those estimates are: an 8 percent increase for water and a 9 percent for sewer in 2010 and 2011; a 6 percent increase for water rates and 4 percent for sewer rates in 2012; and a 5 percent increase for water rates and 4 percent increase for sewer rates in 2013.

“The rate increases are definitely the bad news related to the progress we’re making,” Mayor Sue Hack said. “We’re going to have a detailed conversation on how to spread it out.”