Water and sewer rates

I know the team is working hard on the rate study

either something to do with the rate study or other items

And it'll be a utilities rate study update.

we can do that keeping the uh utility rates um as we proposed for 2027

I think each time we do a rate study, we have specific things in mind

We're going to be completing a comprehensive utility rate study for water, wastewater, and stormwater

And so for the rate study phase, tonight will be the initial touchpoint with the Water Resources Advisory Board.

we'll have an information item on the utilities rate study kickoff

And the analysis of the rate study. That will be a key

Looking ahead, here are some of the key dates for the rate study itself.

Customers are billed at a lower rate for water usage that's below their budget, which is the green area

Because we're talking about the water budget, but we're also talking about rate increases

While annual rate increases of 6-8% are necessary to maintain aging infrastructure

The rate study, the Council needs to approve the rate study, and the rate increases associated

And we assume those would stay the same, there's no… they don't just randomly change.

Is this assuming water rates stay exactly how they are?

The water budget policy evaluation is just phase one of a much larger and more comprehensive rate study starting next year

looking specifically at water budgets and how they will inform the water rate study that we have coming up in 2026

To extrapolate that out, I think, by doing the math right, again, 7%, in 10 years, you're doubled.

an overall rate study is something that we have in mind

one of our 2025 work plan items is the combined evaluation of our water budgets, and along with our rate study

I hope that when we go through the process with the rate study, there's an opportunity to consider both

We are recommending an 8% increase in our water fund, a 6% increase in our wastewater fund

those rates of as I mentioned earlier tended to be between six and 8% annual rate increases per year

council did pass a 75% rate increase in the storm water and flood fund

it would require like two years of roughly 70 or 80% rate increases

We're looking at starting on water budgets and a rate study.

And the city of Boulder's utility bills are about 25% higher than other front range communities shown here

This slide covers our prior year rate projections. So the 2025 column shows the rate increases that were adopted in 2025

so we do have as a 2025 work plan item um starting with a rate study

the next slide just shows all the different uh rate increases that I've been a part of one way or another down at the Utilities Commission

we're proposing an 8% rate increase and the same for uh 2026 8%

the increase in water rates are we thinking about that as one of the um parallel increase cost of living

some of that data like the projected water rates data is information we have at the city level

Any more detail on the timing of the rate study other than just a couple of years.

I guess it just it's interesting to me that our that our water rates are so kind of not dependent upon volume.

It is an 8% rate increase in our water rates, a 6% rate increase for our wastewater rates

there are also other assumptions that kind of are at play when we are projecting our for rate increases

we are looking at an 8% increase in our water rates. 6% increase in our waste water rates

It's not necessarily the case that a 1% rate increase results in 1% additional revenues

the rate increase on the stormwater portion has been quite a bit higher than the other 2

So this table just captures the current year approved rate increases for 2024 these were implemented back in January.

And utility rates, which annually is one of the more important things, and one of the more the the folks that the board has

the rates that we set um and a big part of it for utilities as you see with the city budget process

I will move on to pure community rate comparison.

and to accomplish that back to back years of 20% rate increases.

here is interest in pure community rates and rate increases

about 30 year trend of where the rate increases have gone

So that's additional revenue. Assuming that the read, the recommended rate increases.

Since that money is coming out all over the storm order and select an enterprise phone what have translates into someone's utility rate increase

each of the 3 utilities is separate in terms of its its funding and rates

city council approved rate increases with the primary focus on addressing aging infrastructure needs all 3 funds

full breakout of what we're going to be looking at over the next five years for um increases in our water bills

I just worked on a rate increase you know we just increased it again because.

the water rates uh i i can't afford these

the 2022 rate increases um on average would increase bills by approximately seven dollars and fifty cents

utilities does have a schedule of planned smooth rate increases and they do that to avoid one-time rate spikes

and the 80 percent water rate increase due to a poorly maintained and run water utility

the cost to all of us City Water rate payers will be 66 million to 99 million dollars

shifts many costs of constructing its campus to the city's taxpayers and utility rate payers

includes an 8% increase in water rates 5% increase in Wastewater and a 12% increase in storm water rates

so that's kind of the a snapshot of our our strategy for utility rates and and increases

to balance those two things we we are proposing rate increases as shown on on this slide

my boulder unregulated water utility monopoly bill went up over 80 percent

the boulder water utility monopoly has raised stormwater rates 87% Wastewater Rates 42% and drinking water rates 12%

which will require an increase to the stormwater and flood management rate of 50%

the storm water and flood management utility rates would go up so it by 50 to 70%

storm water rates for um let's say average homeowner

USE WHAT IS CALLED CAPITALIZED INTEREST TO HIDE A THIRTY PERCENT RATE INCREASE FOR EIGHTEEN MONTHS

ARTICLE SEVEN RATE INCREASE OF THIRTY PERCENT JUST EIGHTEEN MONTHS AFTER DAY ONE

while the base charges going up by seven percent for the water rate how much each customer pays is dependent on how much they use

the proposed budget also reflects the following increases to the base utility rates it represents seven percent to water five percent to

the 20/20 recommended budget is based on citywide revenues of 360 point 3 million dollars in supports to note that it's flat over 2019

THEN FINALLY THE WATER RATES ASSOCIATED WITH THE THREE SHARES OF DRY CREEK NUMBER TWO DITCH

residents at the various parks pay into water and sewer that they do not receive any of the benefits

have pretty significantly raised our rates and all three categories over the last five years

I THINK THE OPEN SPACE BOARD SPECIFICALLY HAS ASKED FOR PRACTICALLY THE WHOLE THING ALL HUNDRED AND EIGHTEEN ACRES PLUS WATER RATES IN SOME FROSTING ON TOP

the rates changes are largely based upon both the structure change that's occurring in 2018 as well as just the typical rate increases