Louisville staff proposes 2027 utility-rate increases and $86.5 million capital plan

Louisville staff is proposing 2027 rate increases of 9.5% for water, 15% for wastewater and 10% for stormwater. The package would raise the modeled average residential utility bill by $14.34 a month, from $118.63 to $132.97.

The estimate assumes a household using about 9,000 gallons monthly. Water accounts for $5.31 of the increase, wastewater for $8.05 and stormwater for 98 cents, according to the city’s utility-rate presentation. Actual bills would vary by usage and season.

The proposal is tied to a six-year capital program totaling $62.7 million for water, $16.4 million for wastewater and $7.4 million for stormwater. Much of the increase in water spending comes from two Southern Colorado Water Treatment Plant projects: residual-solids management rose from $5.7 million to $10 million, and an administration building rose from $2.3 million to $5.4 million. The presentation attributes the increases to project complexity, inflation, a second story and additional building space.

To limit near-term rate increases while tap-fee revenue is expected to fall short, staff modeled about $19 million in water financing and $7 million in wastewater financing. The presentation identifies Colorado’s State Revolving Fund as a possible source. Financing could reduce the immediate increase but would add debt service in future years.

Without financing, the presentation estimates that 2027 water rates would need to rise 54% and wastewater rates 132%. The city has not finalized the borrowing amount, term, interest rate, timing or list of financed projects.

The Louisville City Council Finance Committee is scheduled to discuss the revised presentation Sept. 17. Its work plan lists a utility-rate update for Oct. 15, but the available agenda and packet do not identify a date for full City Council consideration or a vote. The Sept. 17 discussion is not an adoption action.