STEAMBOAT SPRINGS, COLORADO-January 21, 2025-A recent Utility Rate Study highlighted the need for a rate adjustment to support the financial health of the Utility Fund, which covers city water and wastewater services.
“While we understand that price increases can be difficult for customers, we remain steadfast in our commitment to operating a utility that is both financially responsible and service-oriented,” said Public Works Director Jon Snyder. “
The city conducts comprehensive rate studies every three years to ensure financial sustainability. The 2024 Utility Rate Study analyzed operational and capital costs to establish rates that equitably recover costs and provide long-term stability for water and wastewater utilities.
The recent Utility Rate Study identified several factors driving the need for adjustments:
- Inflationary Pressures: COVID-19 and subsequent economic conditions led to significant cost increases in labor, materials, and operational resources, disproportionately impacting mountain communities.
- Infrastructure Funding Needs: Replacement of aging infrastructure and compliance with state and federal mandates require ongoing capital investment.
- Cost Distribution: Ensuring rates align with the cost of service for each customer class, including tiered residential rates to incentivize conservation.
Rates reflect annual increases in revenue for water and wastewater services through 2027 and rates are available online. A sample of the rate adjustments over the coming years is listed below:
Retail Water Rates | 2024 | 2025 | 2026 | 2027 |
Monthly Base Rate – Residential/City | $31.28 | $36.75 | $41.72 | $46.59 |
Monthly Base Rate – Low Income/Senior | $15.64 | $18.38 | $20.86 | $23.30 |
Retail Water Rates: Commercial & Combined | 2024 | 2025 | 2026 | 2027 |
¾” Water Meter | $16.52 | $31.37 | $37.65 | $45.18 |
1” Water Meter | $26.97 | $51.48 | $61.78 | $74.14 |
2” Water Meter | $84.47 | $162.08 | $194.50 | $233.40 |
Wastewater Rates | 2024 | 2025 | 2026 | 2027 |
Monthly Base Rate – Residential/City | $39.90 | $41.57 | $43.23 | $44.91 |
Monthly Base Rate – Low Income/Senior | $19.95 | $20.78 | $21.62 | $22.45 |
Wastewater Rates - Commercial & Combined | 2024 | 2025 | 2026 | 2027 |
¾” Water Meter | $18.35 | $21.20 | $22.31 | $23.48 |
1” Water Meter | $29.56 | $32.61 | $34.30 | $36.07 |
2” Water Meter | $91.52 | $98.99 | $103.99 | $109.24 |
“Our mission is to provide critical services without generating profits and to ensure that funds are available for future needs,” commented Distribution & Collection Manager Michelle Carr. “The increase reflects our ongoing effort to balance operational costs with the need to sustain long-term improvements in infrastructure, technology, and service delivery.”
The city’s Low-Income and Senior Utility Rate Program provides 50% discounts on monthly base rates and volume charges for qualifying residents. In addition, other local and federal financial assistance programs exist for utility bills.
The water team is available to assist with inquiries regarding the new pricing structure, payment options, and available assistance programs.
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Contact
Jon Snyder, Public Works Director, 970-871-8207 or email
Michelle Carr, Distribution & Collection Manager, 970-871-8204 or email
Michael Lane, Communications Manager, 970-871-8220 or email