As we enter 2025, Fort Collins-Loveland Water District customers will notice a few changes to their water bill, reflecting the increase in water rates, the addition of a new monthly rate tier for residential and irrigation customers and a few other changes. As a part of our transparent process, these changes have been discussed thoroughly by the board of directors, including considering public comment shared at a public rate hearing on October 15 and regular board meeting on November 19. We understand that rate adjustments aren’t always welcome news. Still, we aim to be open about why these increases are necessary and how they’ll benefit our community in the long run.
TLDR Summary:
- Rates are increasing to cover rising costs due to exceptionally high inflation in the construction industry, including covering the costs of maintaining and updating our backlog of deferred repair and replacement projects to provide reliable water.
- All customers will experience increasing base charges and existing rate tiers for monthly water service by 30%, there will be a new rate tier for single-family residential customers using over 50,001 gallons monthly, there will be a new rate tier that is 2x the irrigation first tier rate for irrigation customers whose water use exceeds their tap allocation, there is an increase in the second tier usage rate for conservation tap customers using over 5,000 gallons of water monthly and an increased plant investment fee for new 3/4” taps from $17,000 to $27,175. Plant investment fees for larger tap sizes are also increasing.
- We’re good stewards of our customers’ money. Revenue from monthly rates goes back into the existing system for improvements. New growth pays its own way through new tap fees, including the water resource fee that secures water for our future and plant investment fees.
Why Are Rates Increasing?
The primary reason for the rate increase is to keep up with rising costs. Like many of you, our district faces the challenge of increased costs and inflation, but there are some challenges that uniquely affect our District. Our most significant expenses go towards the capital improvement program (CIP), which is essential to ensuring that our infrastructure remains reliable. With exceptionally high inflation in the construction industry, these capital projects simply cost more now.
Our capital projects consist of not only keeping up with the ongoing deterioration of our system but also working through a backlog of deferred repair and replacement projects. In the last few years, as the District has reached the first life cycle of our infrastructure, the board has adopted a more proactive approach to repair and replacement, which will be better for the District in the long run. By investing in both regular maintenance and backlog of improvements, we’re working to ensure that our infrastructure is prepared to serve the community for years to come. Our philosophy is to balance reliability with cost-effectiveness, and this requires us to consider our future as well as our present.
In 2023, we had a rate study completed by an independent company, Raftelis, to help us evaluate our needs and how our rates are helping us meet those needs. You can read more about the specific recommendations from the study in a previous blog post. While we implemented a 5% rate increase in 2024, we knew from the study that more would be needed to compensate for the deficit we would quickly incur without raising rates further. As mentioned, the board has been carefully considering the learnings from the rate study, feedback from customers and evaluating our needs for the future while making this decision.
Customers should also know that the rate study recommended that we begin a 30% rate increase in 2024 and continue 30% increases for four to five years in a row. We’ll be monitoring and managing revenue versus costs during those years and re-evaluating at the five-year interval to set our rate needs for the next five years. While the board continues to evaluate rates each year and these decisions are made with the annual budget approval each fall, this is the recommended rate progression needed order to bring us up to date with our backlog of deferred repairs and set us up for success in the future.
What are the 2025 Rate Changes?
In 2025, we’re implementing a few changes that will have varying impacts on customers based on their water needs. One of the goals of the changes is to put the cost of water largely within customers’ control when it comes to outdoor watering. By reducing irrigation usage, customers can mitigate the impact of higher rates on their bills. Here are the primary changes to note:
- All customers will experience increasing base charges and existing rate tiers for monthly water services by 30%.
- This will help us cover the increasing costs of doing business with existing customers and maintaining our existing system.
- A new rate tier for single-family residential customers using over 50,001 gallons of water monthly.
- The current tiers are usage from 0-5,000 gallons, 5,001-15,000 gallons and 15,001 gallons or more. This new tier will mean the third tier will now cap at 50,000 gallons and the fourth tier for residential customers using over 50,001 will now pay 10x the first tier.
- This will help customers have more control over their water bill, especially when it comes to irrigation. The tiers incentivize customers to use less water, since users in the lower tiers pay less per 1,000 gallons than customers in higher tiers. The tiers are designated by volume of water use, so the tier you fall in is entirely in your control. You can see more about the new 2025 rates and tiers on our Rates & Fees page.
Water Tap Size: 5/8″ & 3/4″ Base Charge per Month Rate per 1,000 Gallons (5,000 Gallons or less) Rate per 1,000 Gallons (5,001 – 15,000 Gallons) Rate per 1,000 Gallons (15,001 – 50,000 Gallons) Rate per 1,000 Gallons (Over 50,001 Gallons) 2024 $17.86 $2.09 $2.96 $3.98 Did not exist in 2024 2025 $23.22 $2.72 $3.85 $5.17 $27.17
- A new rate tier for irrigation customers whose water use exceeds their tap allocation with a rate that is 2x the irrigation first tier rate, so any water used over a certain monthly volume (determined by tap size) will cost twice as much per 1,000 gallons as their first tier water usage.
- This will also give irrigation customers more control over their bill, based on volume of water use. Like residential tiers, irrigation tiers incentivize customers to stay under certain usage thresholds to maintain a lower rate.
Water Tap Size: 5/8″ & 3/4″ Base Charge per Month Rate per 1,000 Gallons (Up to Water Allocation) Water Resource Surcharge Per 1,000 Gallons Rate per 1,000 Gallons (Over Water Allocation) Monthly Water Allocation (in gallons) per Calendar Year Divided by 5 Months 2024 $17.86 $4.23 $1.50 Did not exist in 2024 Did not exist in 2024 2025 $23.22 $5.50 — $11.00 38,688
- This will also give irrigation customers more control over their bill, based on volume of water use. Like residential tiers, irrigation tiers incentivize customers to stay under certain usage thresholds to maintain a lower rate.
- Increasing the usage rate for conservation tap customers using over 5,000 gallons of water monthly.
- Conservation tap customers make a commitment not to use potable water for any outdoor irrigation and in exchange receive a reduced water requirement at a significant cost savings. If they use potable water for irrigation, they incur a penalty rate for violating the commitment they made at the time of the tap purchase. Water used up to 5,000 is designed to cover
- We always send a letter when a home with a conservation tap is purchased by a new owner to communicate that they have this type of tap and the related fee schedule.
- Water used up to 5,000 gallons is intended to cover indoor domestic use. Use over 5,000 gallons monthly typically is for outdoor irrigation, which is not the purpose of this type of tap.
Water Tap Size: 5/8″ & 3/4″ Base Charge per Month Rate per 1,000 Gallons (5,000 gallons or less) Rate per 1,000 Gallons (5,001 gallons or more) 2024 $17.86 $2.09 $11.20 2025 $23.22 $2.72 $27.17
- An increase in the plant investment fee for all tap fee sales from $17,000 to $27,175. This is the rate for the 3/4” tap. Other tap sizes scale up as well.
- This is part of our “growth pays its own way” philosophy, which we will explain more in the upcoming section.
The overall philosophy of the types of rate changes reflects the District’s desire to put more ownership and control back into the hands of the customers. If you want to reduce your bill, you can be mindful to stay within thresholds of usage in order to pay the lower rates available. You can see the tiers for usage on our website. If you need help reducing your usage, we have a number of conservation programs and resources available; we also share conservation tips on our Facebook, Instagram and quarterly customer newsletter. Make sure you opt in and follow us for tips and ideas.
Paying for Growth: A Fair Approach
One key component of our rate structure is ensuring that growth costs are paid for by those driving it. We believe that growth should pay its own way, which is why our rate adjustments include increased plant investment fees for new taps. This approach helps protect existing customers from shouldering the financial burden of expanding services and infrastructure to accommodate new development.
By distinguishing between costs for existing customers and those associated with new growth, we can keep the system fair and focused on long-term sustainability. We understand that it doesn’t feel right for our existing customers to think about their bills paying for infrastructure for new development in our growing region. We want to be clear that it does not.
How FCLWD Uses Your Money
As we shared in our blog last month, because we are a special district with a single mission, all funds from your water bill go directly back into maintaining and improving the water system. Every dollar spent is an investment in ensuring that our water system remains robust, resilient and ready to meet the needs of our community. In fact, our status as a Title 32 special district ensures we can’t spend money on anything other than our mission: delivering sustainable, high-quality, secure, reliable and cost-effective potable water to our service population.
If you have any questions about these changes or how they may affect your bill, please feel free to reach out. Our team is available via email at billing@fclwd.com, by phone at (970) 226-3104 or through the contact form on our website. We’re here to provide any additional information you need to understand your bill and make the best choices for water usage.
In Summary
We know that any rate increase impacts our customers, and we approach these decisions with that responsibility in mind. We aim to be transparent and demonstrate that we are good stewards of your dollars. By investing in the reliability and sustainability of our water system, we’re ensuring that this essential service is available, cost-effective and secure for years to come.
Thank you for your support and understanding as we continue to prioritize our community’s water needs.
