Councilors hear water-rate proposal to fund dam, treatment and return-flow projects; average bill to rise gradually

Councilors received an initial briefing on proposed water-utility rate changes intended to fund critical infrastructure projects and to update the residential rate structure.

Councilor Amanda Chavez, sponsor of the ordinance, outlined that water rates have not been increased since 2013 while general costs have risen about 41 percent. The proposed ordinance would implement phased rate increases starting in February 2026 and add a third residential tier (to reward low water users) beginning in 2027. The city said the proposed schedule would raise the average monthly bill by about $2 in 2026, then the rate-structure change would reduce the average bill by about $3 in 2027, followed by roughly $2 increases in each of the following three years; the net effect would be an increase of about $5 per month spread over five years.

The presentation noted four capital priorities: rehabilitation of Nichols Dam and McClure Dam on the Upper Santa Fe River; upgrades to obsolete treatment processes at the Canyon Road Water Treatment Plant; and the San Juan return-flow project, which staff described as key to future water resiliency. Councilors thanked staff and cosponsors for preparing the detailed briefing; staff will brief council more fully in subsequent meetings and present supporting financial analyses and customer-impact modeling prior to any final adoption.