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Council approves modest 3% average increase to water and wastewater rates
Summary
Commerce approved updated water and wastewater rates that city officials said will increase typical residential combined bills by about $2 per month (roughly 3%) to cover utility costs while preserving a lifeline rate for low-use households.
The Commerce City Council on Sept. 16 approved amendments to the city's water and wastewater rates, a change city staff said will raise typical combined residential bills by about $2 per month, or roughly 3%. The ordinance was adopted on second reading as part of the fiscal-year budget package.
Why it matters: The city tied rates directly to the cost of service in its public utility fund. City staff emphasized a protected lifeline rate: the first 4,000 gallons of water for single-family residential customers remains under a subsidized rate intended to cover basic life and health needs. That tier is priced at $4 per 1,000 gallons under the new schedule.
City Manager Lisenby described the structure: “We still have what we call the lifeline rate, which is the first 4,000 gallons of consumption for single family residential structures,” he said during the presentation, and said the city keeps that rate below its variable cost to protect low-usage households. For sewer, the city caps residential sewer charges at the 10,000-gallon level so higher exterior water use does not drive sewer bills for most households.
Staff presented usage statistics: about 67% of residential accounts use 4,000 gallons or less per month and will see the $2-per-month increase; 28% use up to 10,000 gallons and will also see roughly a 3% rise. Commercial and industrial accounts were shown similar average increases based on consumption tiers; industrial accounts with very high usage were listed as having similar percentage increases on average.
The council adopted the ordinance on second reading with an all-aye vote. Staff said revenue from the change will support utility operations without relying on the city's general fund and will be used to maintain system capacity and service levels.
