Gunnison adopts new fee schedule with residential water tier; utility-billing ordinance tabled

Gunnison City Council voted 3–1 on April 1 to adopt Resolution 2026-02, establishing a revised fee schedule that adds a residential water tier and clarifies how base rates apply to different meter and dwelling configurations. Councilor Kim Pickett made the motion to approve the resolution, which Councilor Rohn Peterson seconded; Councilor Stella Hill cast the lone no vote.

The resolution will take effect Sept. 1, 2026, and includes a $20 shutoff fee and language allowing staff to waive delinquency fees in certain circumstances, City Administrator Dennis Marker told the council. Marker said the change also clarifies that base rates are typically charged per serviced unit as indicated by meter sets and that prior inconsistencies had left some multiple-dwelling accounts undercharged and others charged multiple base rates for a single meter.

Marker presented usage data from a November 2024–October 2025 review that staff used to justify the new tiering structure: average monthly residential use was just under 5,000 gallons; 99% of customers used less than 20,000 gallons in the study period; an average of 12 accounts exceeded 20,000 gallons each month (rising to 32.6 accounts on average between May and September); and the single highest monthly usage recorded during the review was 333,000 gallons, attributed to a major leak. Marker told the council there are only five accounts with ongoing average use above 20,000 gallons.

The council also addressed Ordinance 2026-02, a separate draft intended to clarify account setup procedures, new connection requests, a late-fee waiver provision, and modified water shutoff procedures. Council members asked staff to provide clearer guidance to distinguish accidental leaks from intentional waste and to define connection requirements for properties located beyond city limits. Councilor Pickett moved to table the ordinance for further clarification; Councilor Rohn Peterson seconded, and the motion to table carried unanimously.

Why it matters: The fee-schedule changes are intended to encourage more efficient summer water use and ensure base-rate charges reflect service units and meter configurations. The new residential tier keeps the current rate structure for the first 20,000 gallons but creates clearer rules for applying base rates, which will affect billing for several account types.

What’s next: The resolution is scheduled to take effect Sept. 1, 2026. The ordinance modifying billing procedures will remain tabled until staff returns with clarifying language on leaks, customer eligibility for connections outside city limits, and how base rates are applied in mixed-development situations. The council will consider additional budget items as staff develops next year’s draft budget; a CDBG hearing is scheduled for April 15, 2026.