Santa Fe council adopts three-tiered water-rate changes to help fund capital projects
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Summary
Council adopted an ordinance updating water and utility service rates, moving from two tiers to three to encourage conservation and to raise revenue for capital improvements; staff said rates had not risen since 2013 and the average bill is expected to increase about $1 per year for five years starting in 2027.
The Santa Fe governing body voted Jan. 15 to adopt a new water‑rate structure intended to fund upcoming capital projects and encourage conservation.
Mary Garcia, presenting the final action on Bill 2025-25, told the council that water rates have not increased since 2013 and that the utility has experienced roughly 41% general cost inflation since then. The ordinance creates a three‑tier structure intended to reward low water users and shift higher charges to high-volume users. Under the proposal discussed, households using less than 4,000 gallons would be in the lowest tier and could see a small decrease per thousand gallons; tier breakpoints discussed included 4,000, 7,000 and 9,000 gallons. Staff estimated an average residential bill would increase by about $1 per year for the next five years beginning in 2027; the revenue will be used to support large capital improvements for the water system.
During public comment, online participant Stephanie Benenato supported a three‑tier structure and asked the council to consider programs to assist low‑income residents; interim water division director Jonathan Montoya said programs and payment plans are available and that utility billing staff can work with residents on options. The council voted to approve the ordinance on roll-call vote.
What happens next: The ordinance takes effect per its terms and staff will continue to brief the council on implementation details, assistance programs and legislative requests for additional funding.