GREELEY, Colo. — The Greeley Water and Sewer Board on July 16 approved and recommended to the city manager the Water and Sewer Department’s 2026 operating and capital budgets, after staff and board members debated how to balance capital needs with slower-than-expected demand growth.

Staff presented a budget that trims previously proposed increases, reprioritizes projects and adds a small number of staff and operating increases while keeping the budget as lean as possible. Board members asked for continued scrutiny of project timing and for staff to pursue ways to stimulate account growth and to help low-income customers.

Virgil (utility finance/planning), Crystal (budget staff) and Sean (Director) outlined the package: recommended operating increases included roughly $639,000 for water (about 2.7 new positions net) and $278,000 for sewer (about 0.3 new positions net), after offsets and reductions the department identified in other accounts. The 10-year capital improvement program totals hundreds of millions of dollars and includes major items such as the F Street operations center (planned 2027) and later large plant projects in 2033–2034. Staff said the Gold Hill pipeline project is currently programmed to be rate-funded but staff is seeking federal grant support for portions of the work.

Staff told the board the department expects rate increases to make the plan fiscally sustainable: a proposed increase in 2026 would raise water volumetric rates and the monthly service charge (the typical city water-bill example in staff slides showed a combined water, sewer and stormwater bill rising from about $140 to $152 per month for a typical residential customer). Staff said their cash-flow modeling shows additional rate actions in 2027 and beyond (illustrative multi-year scenarios were presented). For 2026, staff recommended a sewer increase of about 5% and changes to water rates intended to recover forecasted revenues while keeping the water-budget structure that encourages conservation.

Board members raised concerns that rising rates can become self-reinforcing: higher bills encourage customers to cut discretionary outdoor water use, which reduces volumetric sales and revenue and can force more rate increases. Staff said they are conducting cross-functional analysis on price elasticity, account formation, and conservation impacts and will return with more detailed findings later in the year.

The board discussed customer assistance programs. Staff noted a one-time utility bill assistance program funded in 2025 (paired with the food tax rebate qualification) provides a $150 credit for qualifying households and that the department has stepped up outreach in English and Spanish; the program’s annual budget is roughly $150,000. Staff also described conservation-targeted programs focused on customers in need, including toilet replacement and other measures done in partnership with county and regional partners.

On staffing and operations, the board approved converting a term-limited cross-connection control position to permanent after repeat sanitary-survey findings and approved reorganization and reclassifications in instrumentation and controls and maintenance to improve system reliability.

The board voted to approve and forward the 2026 operating and capital budgets to the city manager; the motion passed by voice vote. Staff and board members said both the budgets and the accompanying rate plan will be revisited during rate-setting later in the year, and that some projects remain contingent on future demand and grant awards.