The increase is part of a long-term plan for the city to be able to meet the funding and service requirements of water operations. In 2017, the city contracted Stantec Consulting to do a rate study.
“The study determined that to meet the funding and service requirements of water and wastewater operations, revenue collections would need to increase approximately 3.6% to 6.7% annually in each of the subsequent 10 years beginning in 2018,” the agenda read.
Future projects are the main drivers of the increase. From 2025 to 2027, there will be $37 million needed in repairs and another $37 million from 2028 to 2031. Rates will slowly increase between Jan. 1, 2023 and Jan. 1, 2027. The first 3,000 gallons will go from $4.24 to $4.59; 3,000 to 10,000 gallons will increase from $5.31 to $5.75; 10,000 gallons to 20,000 gallons will jump from $6.64 to $7.19; and over $20,000 gallons will creep up from $9.96 to $10.78. City Councilor Rich Kondo asked if there were any rhyme or reason to establishing the tiers. Director of Finance Jason Loveland said they were established a long time ago to encourage conservation. The average winter consumption for Northglenn residents is about 5,000 gallons, which will go from costing $66.76 in 2022 to $69.09 in 2023. Summer months are higher: the average usage is 15,000 gallons. The price tag will increase from $125.36 to $128.84.