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Board approves final utilities budget and proposes a 4.5% rate increase; sewer budget drops
Summary
The board approved the finalized water, sewer and stormwater budgets to forward to council and endorsed staff’s proposed 4.5% rate increase for 2026 (estimated at about $1.08 per month for a typical residential water customer). The sewer budget falls by roughly 7% versus the prior year largely because debt was retired.
The Englewood Utilities Board approved a finalized budget package for 2026 and supported staff’s proposed rate adjustments that will move to city council for final action.
Peter (utilities staff) reviewed the water, sewer and stormwater enterprise funds. He said the proposed water fund budget is roughly $54 million (a near 1% increase from the prior projection) and that the capital program timing had been refined since earlier drafts. Staff said the lead service line replacement program is ongoing — staff stated the program has more than 1,200 lines in the replacement program and that the program is approaching the halfway point. The water budget proposal relies on a mix of WIFIA and SRF financing and fund balance to smooth rate impacts while executing a heavy capital program.
Staff proposed a 4.5% water rate increase for 2026, which the presentation equated to about $1.08 per month for a typical residential user. Connection and capital investment fees were discussed: staff proposed a 3.72% increase to the water connection fee (based on an engineering construction cost index) while keeping the capital investment fee and drinking water loan fee unchanged this cycle.
On the sewer side, staff said the proposed budget declines by about 7% (from approximately $30 million to $28 million) driven primarily by a reduction in debt service after retiring a loan for South Platte Renew expansion work. Staff said some sewer capital work continues, including pipe and manhole rehabilitation and targeted repairs on sewer interceptors running under houses.
Victor Rochelle, director of public works, summarized the stormwater enterprise fund. He said the 2024 return to fund balance included just under $8 million (largely capital timing) and that 2026’s proposal shows a small capital reduction but increased debt service to begin repayment of recent project debt. Staff proposed a 4.5% stormwater fee increase, roughly under $1 per user, to continue funding projects including partnerships with the Mile High Flood District and to support remaining stormwater capital work (for example, South Englewood flood reduction work that extended into 2025).
Board members asked clarifying questions about how Englewood compares to other jurisdictions (the staff presentation compared total bills, including the effects of mill levies that in some jurisdictions fund water/sewer), and about the use of WIFIA and SRF financing to smooth rate impacts. Staff said capital peaks are expected in the near term and to taper in later years as the city completes major projects.
The board voted to approve the budgets as presented and to forward them to city council with the recommended rate adjustments. Staff said the budgets will move to council for formal adoption and that updated outside‑jurisdiction comparisons will be recalculated after peer agencies post their final rates.
