The Santa Fe Public Works and Utilities Committee approved its consent agenda Dec. 1, which included an ordinance to raise water rates and change the city’s water rate structure, and then heard a staff presentation explaining the reasoning and timing behind the proposal.

Director Jesse Roach of the city’s public utilities department told the committee the city has not raised water rates since 2013 and said inflation and major capital needs now require additional revenue. “We haven't raised water rates since 2013,” Roach said, noting a roughly 41% rise in inflation since then and listing forthcoming projects including Nichols Dam, McClure, the Canyon Road water treatment plant and the San Juan return‑flow project.

Why it matters: Roach said the four large projects will push annual capital spending toward roughly $30 million a year over the next five years and that staff is pursuing about $77 million in loans and grants to help cover costs. To shift some developer contributions away from water rights and toward financial support for projects, the presentation said the city proposes increasing its fee‑in‑lieu from about $16,600 (the historic amount cited) to $36,000.

How customers would be affected: The ordinance would phase a modest rate increase starting in February 2026 (if the ordinance is enacted) and would change the per‑unit charge structure in January 2027 after the city’s new billing software is live. Roach described the new design as a year‑round three‑tier structure that lowers the first tier to roughly the first 4,000 gallons, creates a middle band from about 4,000 to 7,000 gallons, and places higher rates above that. He said the structure change was intended to protect low users while shifting more of the variable revenue burden to high, often outdoor, summer users.

Roach used customer‑use data to justify thresholds: he said about 75% of users use less than 3,000 gallons a month and 95% use less than 8,000 gallons, while roughly 1% use more than 17,000 gallons. He gave examples of bill impacts under the proposed structure: a low user’s winter bill would shrink slightly under the structure change while a high summer user could see a significant increase (Roach’s presentation compared a summer bill rising from about $163 to $215 for a high user under the new structure).

Customer support and incentives: In response to council questions, Roach pointed to tools and programs to help customers reduce consumption. “The ION water app ... allows them to monitor in almost real time their water use down to the 15 minutes,” Roach said, describing features that let users track nightly or daily use and set alarms. Elsa Castro of the water conservation section said the city “offers rebates for efficient fixtures, toilets, washing machines, dishwashers,” and staff said they are exploring additional incentives for outdoor irrigation equipment and stormwater capture.

How the committee acted: The consent agenda — which committee members moved and seconded and approved by roll call — included the ordinance on water rates. Recorded roll‑call responses on the consent agenda were “Yes” from Councilor Castro, Councilor Lee Garcia, Councilor Romero Worth and Counselor Chavez; Councilor Michael Garcia was excused.

Next steps: Because the ordinance was carried on the consent agenda, staff may begin administrative steps tied to the Feb. 2026 rate increase and to prepare the billing‑software rollout that must precede the Jan. 2027 structure change. Roach and staff are pursuing grants and loans to offset the capital program’s costs and said they will return with additional details as projects and financing progress.

The committee also recognized Taylor Jurgens of the water division as employee of the month and heard staff and councilors thank Councilor Romero Worth for eight years of service; committee announcements closed the meeting.