At Fort Collins-Loveland Water District (FCLWD), our mission has remained the same for over 60 years: to provide sustainable, high-quality, secure, reliable and cost-effective water to every customer we serve. Each year, we evaluate rates to ensure we can continue maintaining that commitment while keeping pace with the cost of delivering water safely and reliably.
TL; DR Summary
- The Board of Directors has approved a 10% rate increase across the board in 2026, except for several changes to tiered rates.
- As a special district, we do not profit from rate increases. Every dollar we receive goes toward our operations. We keep the lower usage tiers and base rates as low as possible to accommodate essential indoor water use.
- Our rates are not set arbitrarily. They are set by a data-driven process, including various independent rate studies.
What is the 2026 Rate Adjustment?
After careful analysis, the District’s Board of Directors has approved a 10% rate increase across all monthly base rates and most of the usage charges for 2026. In addition to the across-the-board increase, there are a few structural adjustments for specific tiers:
- Tier 4 Residential and Tier 2 Irrigation rates will now be 1.2 times (previously 2 times) the charge for the preceding tier.
- The Tier 2 Irrigation allocation will be spread over four months instead of five, allowing for more water usage at the lower tier rate during peak irrigation months..
The adjustments to the rate tiers are a reflection of our community members sharing their situations with us about how large jumps between tiers were affecting them. Some customers, especially HOAs with irrigation taps and residential customers with large lot sizes may event see a drop in their bills in 2026 due to the adjustments between tiers.
These changes take effect on January 1, 2026. While each customer class’s rates vary based on their tap size and type, the table below shows the rates for our most common customer: residential customers with 5/8” or 3/4” taps. The average residential customer will see an increase of $6.45 on their monthly bill.
All other tap types and sizes can find the 2026 rates for those taps on the Rates and Fees page.
Why FCLWD Uses a Tiered Rate Structure
Our rate structure is designed to balance fairness, efficiency and sustainability. Each “tier” represents a level of water use:
- Lower tiers cover essential indoor water use for drinking, cooking, cleaning and sanitation.
- Higher tiers reflect outdoor and seasonal use, such as landscape irrigation, which requires more capacity from our system and increases costs during summer peaks.
This approach helps protect essential water needs with the lowest possible rate, while encouraging efficient outdoor use and ensuring the system remains sustainable for everyone. Higher tiers help curb excessive water use and we are very thankful to our customers for being responsive to that.
What It Means to Be a Title 32 Special District
When we increase rates, we expect that some customers may wonder where that money is going. It’s essential for our customers to know that FCLWD operates as a Title 32 Special District under Colorado law. That means we are a local government entity, separate from city, county or state government.
As a purpose-specific organization, every dollar collected through rates goes directly toward the cost of providing water service, including operations, maintenance, treatment, storage and delivery. We do not generate profits, nor do we divert funds to external programs.
Our single mission is to deliver potable water. That means we remain neutral on issues outside of that mission, such as:
- Land use and growth planning
- Affordable housing and development incentives
- Sales tax and economic development initiatives
- Cultural or social programs
By focusing solely on our mission, we ensure every investment and rate decision supports one goal: sustaining a reliable, high-quality water system for our service area.
How Rates Are Set: A Data-Driven Process
FCLWD does not set rates arbitrarily. Each adjustment is based on careful analysis of operational costs, infrastructure needs and long-term sustainability.
Our rates are built around two key cost categories:
- Fixed costs, which include infrastructure maintenance, staffing, and administrative operations.
- Variable costs, which fluctuate with the amount of water treated and delivered.
Independent rate studies, most recently completed in 2023, evaluate these factors and recommend adjustments based on future needs. The 2023 study suggested a 50% increase over several years, but after additional internal review and the 30% increase in 2025, the District determined that a 10% increase in 2026 would be sufficient to maintain operations and continue improving our infrastructure responsibly for the next year. The board continues to evaluate rates each year and potential rate increases will be evaluated one year at a time.
These studies, along with historical rate data, are available on our website for full transparency.
Planning Ahead: Earlier Approval for Greater Transparency
This year, the FCLWD Board of Directors approved the 2026 rates earlier than ever before, reflecting a commitment to transparency and proactive communication.
By finalizing the budget and rates ahead of schedule, we’re providing residents, businesses and HOAs more time to plan for the coming year. This early approval was a direct response to customer feedback requesting more visibility into rate decisions. We shared proposed rates at our August 19 board meeting, which was open to the public, and began communicating directly with HOAs shortly after, inviting them to the public rate hearing. The public rate hearing on September 23 was the earliest we’ve completed a rate hearing.
“Our customers are not just arbitrary tap holders. They are our owners. They elect the board members and we should enthusiastically listen to them,” Peter O’Neill, vice-chairman of the board of directors, said. “After hearing from community members throughout this last year, we wanted the 2026 rates to reflect the broad experiences of our customers, and to release rates as early as possible.”
Our goal is to ensure every customer understands what their rates fund, and to give our community confidence that those funds are managed with diligence and foresight.
Looking Ahead: Investing in Reliability for the Next Generation
After more than 60 years of service, FCLWD is entering its replacement era. It’s essential that we modernize the infrastructure that was built decades ago to ensure reliable service for future generations.
We don’t undertake projects to keep staff busy or expand beyond our mission. We do it to maintain the quality, reliability and security of your water supply. Rate adjustments make this possible.
To learn more about how rates are set, review past rate studies and view detailed 2026 rate tables, visit https://fclwd.com/support/rates-and-fees/.
