City Utilities Department recommends rate increases for water, wastewater, and stormwater funds

The Water Resources Advisory Board meeting held on July 21, 2025, in Boulder City, Colorado, focused on critical discussions regarding water management, financial strategies, and upcoming capital projects. The meeting commenced with an overview of the agenda, which included a review of past discussions, financial planning, and proposed rate increases for water, wastewater, and stormwater services.

Steph, a key presenter, recapped the previous meeting's discussions on capital prioritization and the necessity of adjusting project timelines to optimize financial planning. The board emphasized the importance of maintaining healthy reserve funds to manage unexpected costs and stabilize cash flows. The financial strategies discussed included monitoring key indicators such as cash on hand and debt service coverage ratios, which are crucial for favorable positioning in the bond market.

Looking ahead, the board proposed an 8% increase in the water fund, a 6% increase in the wastewater fund, and a 5% increase in the stormwater and flood fund for the upcoming year. Projections for 2027 and 2028 included further increases of 8% for water and wastewater funds and 7% for stormwater and flood funds. The board acknowledged the significant capital backlog but deemed the proposed rate increases appropriate for the current financial landscape.

A notable adjustment discussed was the acceleration of the Patasso project, which was moved up a year to align with planned debt issuance. Additionally, the design and construction standard update project was deferred, while the Chautauqua infrastructure improvement project is currently underway with added funding.

The board also introduced a utilities cost of service and rate study planned for the following year, which aims to comprehensively review all utility rates and user fees. This study will involve public outreach and benchmarking against other utilities to ensure equitable and transparent pricing structures.

During the meeting, members raised questions about the timing of rate increases and the necessity of adjustments in future years. The board clarified that while the wastewater fund would likely see a rate increase in 2027, the stormwater fund would be evaluated based on next year's financial performance.

The meeting concluded with discussions on major bonding efforts for upcoming projects, including a $66 million South Boulder Creek flood project currently facing litigation, which has delayed bond issuance. The board highlighted the importance of planning and stability in bonding to maintain favorable rates in the market.

Overall, the meeting underscored the board's commitment to effective water resource management and financial prudence, setting the stage for future projects and rate adjustments that align with community needs and operational priorities.