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FLOW committee backs tiered commercial water rates to target high outdoor use
Summary
Staff proposed replacing the flat commercial water rate with a four‑tier structure (Tier 1: up to 40,000 gallons; Tier 2: up to 150,000; Tier 3: up to 1.5 million; Tier 4: exceptional usage) to encourage conservation and better align charges with consumption. The committee unanimously recommended the tiered structure to City Council.
Mark Lorie, deputy director of operations, presented a proposal to replace Broomfield’s flat commercial water rate with a tiered structure modeled on the residential tiers. He said, "Tier 1 would cover up to 40,000 gallons per month, Tier 2 up to 150,000 gallons, Tier 3 up to 1.5 million gallons," and that fewer than 1% of monthly bills would fall into the highest tier based on 2024 usage data.
Staff told the committee the tiers were designed to minimize impacts on routine indoor business operations while charging more for unusually high consumption such as outdoor irrigation. The analysis estimated the structure could generate about $500,000 annually and that only three customers reached the highest consumption level in 2024. Committee members asked about effects on manufacturers, breweries, restaurants and car washes; staff said water costs are a small portion of business expenses and are unlikely to change location decisions.
Art Umble moved that the FLOW Advisory Committee recommend City Council adopt the proposed commercial tiered rate structure; Jeffrey Fredericks seconded the motion, which passed unanimously. The committee recommended targeted outreach and clearer percentile‑based charts to explain the methodology to large water users.
