The Santa Fe City Council is slowing down on a proposal that would hike water rates by nearly 60 percent in five years.

On Wednesday, councilors were slated to vote on whether to schedule a public hearing and final vote, which would take place Dec. 10. Instead, they decided to postpone that decision until next month, moving back a possible public hearing and final vote until next year at the earliest.

Councilor Rebecca Wurzburger, who is sponsoring the measure, along with Councilors Rosemary Romero and Miguel Chavez, said she wanted to put off the discussion in order to give staff time to flush out other options.

Other councilors said they want the city to perform more public outreach about the plan, which aims to make water bills 57.4 percent higher in five years. An average residential bill today of $34.50 would jump to $49.50 at the projected end of the increase, which would tack on about 9.5 percent each year.

Committee votes and public statements indicate the eight-member council could be evenly divided on the proposed increase, with the mayor in a possible tie-breaking role. The matter will be up for discussion again at the next Public Utilities Committee meeting Dec. 3.

Also Wednesday, Mayor David Coss introduced additional proposals aimed at softening the blow of the increase for those on fixed or low incomes. His idea is to increase the threshold for the city's "poverty exemptions" to make them apply to those who earn about 200 percent of the area median income. The exemptions waive some monthly charges for those who qualify.

By city design, the water system is supposed to be financially self-sufficient for operations as well as capital projects, according to the language in its proposed 10-year financial plan. Cash for both purposes comes from water rates that are paid by its approximately 32,000 customers, including some who are served outside the city limits. Money from special tax increments and utility-expansion charges also goes into the water system.

New revenue from the rate increase is part of the city's plan to pay for roughly half the cost of the Buckman Direct Diversion project, which the city is building with Santa Fe County and Las Campanas private development. But some of the revenue from the proposed increase also is earmarked to pay for another $90 million or so in infrastructure improvements over the next decade.

In addition to buying water rights, the city plans to work on the Canyon Road water treatment plant, replace water meters, add new storage tanks and replace aging waterlines.

In May, the Water Division proposed increases of about 5.6 percent, but that number has risen as analysts take a closer look. By August, staff were seeking a 6.99 percent increase each year for seven years. In October, they arrived at the current proposal — which is steeper over a shorter period of time.

The city is also poised to soon consider an increase on sewer rates, which are included on the same monthly bill as water. No formal proposal has been introduced, but a draft indicates rate could jump by at least 10 percent.

More information about the proposed water rate increase is posted on the city's Web site, www.santafenm.gov.

Contact Julie Ann Grimm at 986-3017 or jgrimm@sfnewmexican.com.