Tusayan would have to spend millions of dollars if it wants to get into the municipal water system business. Engineer Richard Humphreys, hired by Tusayan to look into the purchase of Hydro Resources, delivered his report to the Town Council. He said the value of Halvorson owned Hydro Resources is about $1.4 million.

It would cost an additional $7.5 million dollars to purchase the addition infrastructure to make Hydro a stand-alone municipal system.

Humphreys says the connection fee for a residential meter would go from $43 to $74. The cost per thousand gallons of water would go from the current $12 to $20. Humphries said the cost to create a stand-alone system is substantial and would increase the rates between 66% and 72%.

According to the engineers’ report, Hydro serves 80 residential and commercial customers.