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Broomfield staff endorse higher long‑term utility spending after AECOM analysis; recommend 2026 rate increases
Summary
City and County of Broomfield staff presented an AECOM asset‑management analysis showing larger annual funding needs for water and sewer/stormwater; staff proposed a 15% rate increase for water/wastewater/reuse in 2026 and a 9% stormwater increase, and asked council to confirm timing for bond issuance and rate adoption.
City and County of Broomfield staff and consultants told the City Council during a July study session that their updated asset‑management modeling supports higher annual investments in utilities and recommended rate increases to keep enterprise funds solvent.
"We reported to you guys back in 2024… these spending levels we're modeling for replacement of existing assets in kind," said Bridget Malinowski, asset management practice lead for AECOM, summarizing the firm’s refined analysis. AECOM and city staff said their highest scenario funds replacement at about $6,000,000 annually for water assets and $9,000,000 for sewer and stormwater assets.
The AECOM analysis modeled three funding scenarios and several performance and spending metrics (backlog, reliability, condition, and operating costs) over a 20‑year window. Bob Peskin of AECOM said the model now weights age/condition, risk (probability × consequence of failure) and operating‑cost tradeoffs to prioritize replacements. Under the high‑funding scenario presented, AECOM reported backlog would be eliminated within two years for water assets and asset condition and reliability would improve over time.
Why this matters: the council must balance near‑term rate shocks with the longer‑term risk and cost of deferred infrastructure work. Staff recommended applying a 15% increase to water, wastewater and reuse rates for 2026 and a 9% increase for the new stormwater fund, and requested council confirm the rate schedule as part of the 2026 budget process.
Staff said recent wet weather reduced usage in 2025 (year‑to‑date consumption through June down about 12% compared with 2024). "Overall, year over year through June, consumption is down by 12%, driven primarily, by substantial rainfall in June," Finance Director Graham Clark said, adding that because the rate structure now emphasizes base fees, the water fund is less volatile to usage swings.
Staff also flagged other near‑term items affecting enterprise finances: the URAF (utility residential assistance) program has processed more than 1,600 applications with over 1,300 approvals so far; staff expect URAF-related assistance and personnel costs to total in the "$400,000 to $600,000 range by the end of the year" and anticipated an application deadline of Sept. 30, 2025.
Bond and cash planning: staff said Broomfield expects to issue two enterprise bonds in early 2026 and has begun documentation. "We do plan to have our financial advisors, RBC, come and discuss more on bond details in the next quarterly meeting or around the time of the budget," Clark said. The staff memo and presentation indicated a mid‑January 2026 timing for bond issuance as optimal for market demand.
Operational updates and capital programs were presented alongside the AECOM modeling: a meter‑replacement program (ultrasonic meters) is underway (project cost cited at about $13,500,000 for the 12‑year replacement program), several waterline and sewer rehab projects are in construction, and city staff reported completion of the Mesa Booster Station and the use of LG Sonics units to manage algae in selected reservoirs.
Council members asked for clarity on the link between AECOM’s modeled scenarios and staff’s recommended rate plan. Graham Clark and Ken Rutt, director of water utilities, told council the staff recommendation aligns with AECOM’s high‑funding scenario (roughly the $6M/$9M annual levels for water/sewer and stormwater). Council members also asked for scenario comparisons and examples of the practical effect of changes in the reliability metric used in the model.
What’s next: staff asked council to confirm proposed 2026 rate recommendations at first reading of the 2026 budget on Oct. 14, 2025, and to proceed with bond planning for early 2026. Staff said they will return during the budget process with more detailed scenarios, sample bills and the public engagement steps that accompany rate proposals.
Ending: the council did not vote during the study session; staff sought direction and said they will bring formal rate and bond items back for ordinance readings and public hearings during the regular budget process.
