HomeMy WebLinkAbout10/16/2025 - Water Commission - AGENDA - Regular MeetingWATER COMMISSION
REGULAR MEETING OCTOBER 16, 2025
10/16/2025 Agenda Page 1 of 2
Participate online via Microsoft Teams or in person at 222 Laporte Ave.,
Colorado River Community Room, 1st Floor
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1. CALL TO ORDER
a. 5:30 PM
2. ROLL CALL
3. AGENDA REVIEW
4. PUBLIC PARTICIPATION (3 minutes per individual)
5. APPROVAL OF MINUTES: July 17
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WATER COMMISSION
REGULAR MEETING OCTOBER 16, 2025
10/16/2025 Agenda Page 2 of 2
6. NEW BUSINESS
a. Staff Reports
i. Memo: 2024 Building Code Adoption
(Meeting packet only/No presentation)
ii. Financial Monthly Reports
(Meeting packet only/No presentation)
Due to meeting cancellations in August and September, reports for July,
August and September are included in the agenda packet.
b. Regular Items
i. 2026 Utility Rates (Presentation: 10 minutes, Discussion: 10 minutes)
Joe Wimmer, Director, Utilities Finance
Randy Reuscher, Manager, Utility Rates
Staff will present 2026 proposed utility rates and request a
recommendation to City Council. This item is scheduled for the Nov. 3
Council meeting.
7. COMMISSIONER REPORTS
(Committees, event attendance, etc.)
8. OTHER BUSINESS
(Commissioner concerns, announcements)
a. The Michigan Ditch Wildfire Ready Action Plan tour in August was cancelled
due to weather and will be scheduled in 2026
b. Water Commission 2026 Work Plan is due Nov. 20
c. Water Commission 2025 Annual Report is due Jan. 31
d. Boards and Commissions recruitment and open house information will be
shared soon
9. ADJOURNMENT
a. 7:30 PM
07/17/2025 DRAFT MINUTES Page 1 of 5
Water Commission
REGULAR MEETING DRAFT MINUTES
Thursday, July 17, 2025 – 5:30 PM
222 Laporte Ave., 1st Floor, Colorado River Room
1. CALL TO ORDER: 5:31 PM
2. ROLL CALL
a. Commissioners Present (In Person): Chairperson Laura Chartrand, Vice Chair
James Bishop, and Commissioners James Bishop, Richard Kahn, Nick Martin
b. Commissioners Present (via Teams): Commissioners Paul Herman, Nicole Ng,
Greg Steed
c. Commissioners Absent: Commissioner Jordan Radin
d. Staff Members Present (In Person): Jill Oropeza, Katherine Martinez, Joe
Wimmer, Katie Collins, Erik Monahan, Cindy Farnes, Kathryne Marko, Kelly
Wasserbach, Mandy Rasmussen, Christina Schroeder, Andrew Gingerich, Alice
Conovitz, Gregg Stonecipher, Matt Fater, and Jeremy Woolf
e. Guests: None
3. AGENDA REVIEW
Chairperson Chartrand provided a brief overview of the agenda.
4. COMMUNITY PARTICIPATION (Public Comment)
None
5. APPROVAL OF MINUTES: June 5
Chairperson Chartrand asked commissioners for any revisions or comments on the
draft minutes. There were none.
Vice Chair Bishop moved to approve the minutes as presented.
Commissioner Martin seconded the motion.
Vote on the motion: it passed unanimously, 8-0
6. STAFF REPORTS
a. Financial Monthly Report
Utilities Finance Director Joe Wimmer gave a brief overview of report
highlights. No discussion. Commissioners thanked staff for the information.
b. Water Conservation Annual Report
Water Conservation Specialist Katie Collins gave a brief overview of report
highlights. No discussion. Commissioners thanked staff for the information.
c. Drinking Water Quality Policy Annual Report and Submission of
Consumer Confidence Report
Technical Services Supervisor Erik Monahan provided a brief overview of
07/17/2025 DRAFT MINUTES Page 2 of 5
format revisions suggested by Water Commissioners last year regarding the
Drinking Water Quality Policy Report: highlights included less narrative and
more information on how staff protects water quality, and details on wildfire
impacts in recent years; he welcomed comments and questions.
Environmental Regulatory Specialist Cindy Farnes was also present to answer
questions.
Discussion Highlights
Commissioners commented on and inquired about various related topics
including highlights of the format revisions, elimination of unnecessary details,
and the Water Commissioners’ feedback last year as an effort to reduce staff
burden and time spend compiling data for the report (Mr. Monahan stated the
result was a huge decrease in staff time); raw water quality and turbidity has
improved in the aftermath of recent wildfires; Plant Director of the Water
Treatment Facility Gregg Stonecipher mentioned a five-year recovery cycle for
the watershed after a wildfire, and he predicted seeing trends related to
climate change in the next decade. Commissioners thanked staff for being
responsive to suggestions and streamlining the report.
d. Key Findings from the Water Reclamation and Biosolids Master Plan
Special Projects Manager Kelly Wasserbach provided an overview of
operations, and the master plan purpose and updates, including treatment
alternatives analysis, project prioritization (asset repairs and replacement),
regulatory requirements, etc. Estimated costs over 20 years: $431,260,000
(replacement/renewal estimate is $287,510,000 and new/regulatory needs
estimate is $143,750,000). Big ticket items for the first five years are
headworks, blowers, and Phase II Phosphorus Removal.
Discussion Highlights
Commissioners commented on and inquired about various related topics
including whether the information is qualitative or quantitative information (Ms.
Wasserbach replied that it was both); location of segments 12a and 11;
temperature differential (staff answered it’s based on month); appeal process;
stream standards (Environmental Regulatory Affairs Manager Kathryne Marko
explained standards, options, compliance schedules, participation in rule-
making hearings, and environmental and financial considerations); regarding
Regulation 38 and whether constituents are pushing to have more cold water
segments; funding support (staff can apply for federal and state grant and loan
programs); redundancies and negative contingencies (Mulberry Water
Reclamation Facility was last updated in 2008, now requires a significant
investment). Commissioners thanked staff for the information.
7. REGULAR (ACTION) ITEMS
a. Mid-Cycle Appropriation from Wastewater Reserves for North Process
Train Blower Replacement
Plant Director of Drake Water Reclamation Facility Christina Schroeder
provided highlights of the appropriation request to replace a failed blower (that
is currently inoperable) to comply with discharge permit requirements. Plant
Engineer Mandy Rasmussen attended as staff support. Ms. Schroeder
described the blowers (installed in 2011) as the lungs of the reclamation
facility and highly critical to the treatment process; the blowers are no longer
07/17/2025 DRAFT MINUTES Page 3 of 5
supported by the vendor; the facility is now limited to three of four blowers
required by the State of Colorado Water Quality Division. Engineer’s opinion of
probable cost is $2,350,000. The project was initiated with Water Reclamation
and Biosolids replacement program funds ($650,000). This item is scheduled
for the Aug. 19 City Council meeting.
Discussion Highlights
Commissioners commented on and inquired about various related topics
including whether the City is subject to fines (Ms. Schroeder replied not at this
time; a fine would occur only if the facility were unable to fulfill discharge
requirements); improvements in equipment technology and design (Fort
Collins Utilities is not the only municipality to replace its blowers earlier than
the 20-year expected life of the equipment (Boulder replaced its blowers
several years ago, for example); whether other projects are competing for the
funding; Utilities Finance Director Joe Wimmer stated that staff is comfortable
using reserves now and that other repair/replacement projects identified in the
master plan will be funded by issuing debt (the wastewater fund currently has
no debt and will be in a good position to enter the market).
Commissioner Kahn moved that the Water Commission recommends City
Council approve a mid-cycle appropriation of $1.7 million from wastewater
reserves for North Process Train Blower replacement.
Commissioner Martin seconded the motion.
Vote on the motion: it passed unanimously, 8-0
b. Mid-Cycle Appropriation from Waster Reserves for Emergency
Replacement of Lemay Avenue Waterline
Staff requested a Water Commission recommendation for City Council
approval to replacement the 20-inch waterline – originally constructed in 1977
– in Lemay Avenue between Harmony Road and Harbor Walk. Water Field
Operations Manager Andrew Gingerich summarized the history and details of
the seven water main leaks over two months in Lemay Avenue between
Harbor Walk and Breakwater. Each leak requires full closure of Lemay
Avenue for 18 to 24 hours, and repair costs are estimated between $140,000
to $175,000 (each leak costs approximately $20,000). Leak repair doesn’t
affect individual services but creates isolated system vulnerability. Vintage
pipes were installed in 1979 and 1985. Construction can be completed by
summer 2026. Engineer’s opinion of probable cost is $3.4 million.
Discussion Highlights
Commissioners commented on and inquired about various related topics
including the southern piece of pipe down to Harmony Road’s north side,
replacement would be from north of Harmony (not into the Harmony/Lemay
intersection; comment 2,800 feet is a lot of pipe (a half-mile); assessments
can happen only during a water main leak; possibility of trenchless repair (Mr.
Gingerich stated it’s possible and that staff will evaluate this during the design
process); whether Streets Department budget contains money for this paving
(staff replied that Utilities pays Streets Department for asphalt patching,
paving, and traffic control.)
Commissioner Martin moved that Water Commission recommends City
Council approve a mid-cycle appropriation of $3.4 million from water reserves
07/17/2025 DRAFT MINUTES Page 4 of 5
for Lemay Avenue 20” Water Transmission Main Emergency Replacement.
Commissioner Herman seconded the motion.
Vote on the motion: it passed unanimously, 8-0
c. Water Efficiency Plan (WEP) Request for Recommendation
Water Conservation Specialist Alice Conovitz summarized comments on the
draft plan from the June 5 meeting, and reported that the plan is being
finalized and will be presented to City Council on Sept. 2. Acting Water
Conservation Manager Katie Collins was present as staff support.
Discussion Highlights
Commissioners commented on and inquired about various related topics
including whether any Water Commission feedback was tricky to incorporate
(Ms. Conovitz responded that the Water Commission had asked whether the
plan was doing enough; as a result, staff increased the goal from 3% to 4% by
the year 2040 for reduction in water consumption); number of public
comments totaled eight, and staff outreach efforts were extensive via website,
social media, Utilities bill insert; engagement efforts occurred over many
months and feedback was incorporated into the draft plan; whether the eight
commenters included any major water users (staff didn’t ask for commenters’
identity in the form, but reached out individually to large customers and
received thanks for sharing the information; whether there’s any economic
cost change to City by increasing the water consumption reduction goal from
3% to 4% (staff’s response: impact to revenue due to decreased consumption
over years has resulted in big swings that are weather-driven [increased
precipitation] from year to year that tend to be more than 4%, such as in 2023
a very wet year, which resulted in a 13% decrease in demand relative to
historical data, and staff is expecting less of an impact on revenue with the 4%
goal); community outreach during plan development was partially grant-
funded, and staff invested heavily in outreach toward community members
who historically don’t participate; question of whether scaling back on money
spent on outreach efforts could go toward other projects or programs (Ms.
Conovitz responded that outreach related to the public comment draft (such as
social media, Utility bill inserts, translation, etc.) was low cost, about a few
hundred dollars); comment that very few members of the public have attended
Water Commission meetings over the past few years, leading to speculation
that people simply aren’t interested; Staff Liaison to the Water Commission Jill
Oropeza (Senior Director of Integrated Sciences and Planning) mentioned
clear direction from City Council on community outreach required, and that the
plan included heavy public engagement during early stages of the plan
development.
Vice Chair Bishop moved to recommend City Council adopt the updated
Water Efficiency Plan.
Commissioner Kahn seconded the motion.
Vote on the motion: it passed unanimously, 8-0
8. COMMISSIONER REPORTS
(Committees, event attendance, etc.)
a. For awareness, a Commissioner commented on the new process for public
07/17/2025 DRAFT MINUTES Page 5 of 5
comments at City Council meetings: speakers must register online in advance
( https://www.fcgov.com/council/councilcomments )
b. A Commissioner shared that Nebraska has sued Colorado under the South
Platte River Compact.
9. OTHER BUSINESS
Business Support III Katherine Martinez provided an update on the planning of
staff-led tours for Water Commissioners in August (Michigan Ditch/Wildfire Ready
Action Plan) and October (Oak Street Stormwater Improvements Project).
10. ADJOURNMENT: 6:59 PM
Minutes to be approved by the Chair and a vote of the Water Commission on 09/18/25
10/16/2025
Community Development and Neighborhood
Services
281 North College Avenue
PO Box 580, Fort Collins, CO 80522
970-416-2324
mcoldiron@fcgov.com
MEMORANDUM
Date: 10/1/2025
To: Water Commission
From: Marcus Coldiron, Chief Building Official
Subject: Adoption of the 2024 Building Codes
BOTTOM LINE
The purpose of this memo is to update the Water Commission on the adoption of 2024 Building
Codes, including Energy Code and Wildland Urban Interface Code (WUI), specifically regarding
water use. The 2024 International Codes (2024 I-Codes) represent the most up-to-date,
comprehensive, and fully integrated body of codes regulating building construction and systems
using prescriptive and performance-related provisions. The purpose of these codes is to
establish the minimum construction requirements to safeguard the public health, safety, and
general welfare by regulating structural strength and stability, sanitation, light and ventilation,
energy and water conservation, and property protection from hazards attributed to the built
environment within the City of Fort Collins.
BACKGROUND
Since 1924, the City of Fort Collins has periodically reviewed, amended, and adopted the latest
nationally recognized building standards available at the time. The City has updated the minimum
construction standards 17 times since 1924. Building codes and standards are reviewed and
voted on by code officials and construction industry professionals from across the country and
published every three years under the oversight of the International Code Council (ICC). These
core 2024 I-Codes represent the latest construction publications from ICC.
The code updates include the following scope of work:
1. 2024 International Codes (Adopted April 2022): This is a complete replacement of the 2021
editions of:
• International Building Code
• International Residential Code
• International Mechanical Code
• International Fuel Gas Code
• International Energy Conservation Code
• International Existing Building Code
• International Swimming Pool and Spa Code
• International Property Maintenance Code
• International Plumbing Code
• National Electric Code
2. State Bills/Laws:
• Colorado Wildlife Resiliency Code
• HB25-1273 Residential building stair modernization
3. Local Amendment highlights:
• Remove redundancies with 2024 International Codes
• Increase Flexibility for EV Charging
• Simplify Accessory Dwelling Units (ADU) Requirements
• Update compliance path using Modeled Energy Code Targets
• Increase Accuracy of Water Demand Estimates
• Improve Visitability (Guest Accessibility)
• Codify Community-Based Shelters & Temporary Emergency Uses
REVIEW PROCESS
The implementation of new building standards can impact the construction industry and local
economy. To better understand these impacts, a code review committee is convened to review
the new codes and all local amendments. In addition to representation from several surrounding
jurisdictions, the code review committee represents a wide spectrum of volunteers from across
the local construction industry including private developers, residential and commercial builders,
architects, engineers, representatives from the energy conservation sector, and Poudre Fire
Authority.
Starting in March 2025, the code review committee began meeting to discuss new code, proposed
amendments, and current amendments. This committee completed their review on July 30, 2025,
with support to adopt the 2024 I-Codes and amendments. While this review process requires
considerable time and resources, it produces enforceable and effective building codes and
amendments that the community and construction industry create and support together while
continuing to align with the City’s goals and priorities.
Generally, the committee focused on the following themes when considering local amendments:
• Align our regulations with other jurisdictions for consistent quality/safety outcomes and
customer experience
• Advance City goals from City Plan, Water Efficiency Plan, Our Climate Future and other
guiding documents with impact
• Improve customer experience through simplicity, consistency and optionality
• Consider short-term and long-term costs and savings implications
• Remove redundancies and overlap where international codes have caught up to local
amendments
WATER USE AND EFFICIENCY IMPACT
Historically, the City of Fort Collins has been proactive, requiring indoor water efficiency
improvements above and beyond national, state and ICC prescriptive code requirements for over
a decade.
2011 adoption:
• Toilets: 1.28 GPF
• Showerheads: 2.0 GPM
• Bathroom sink: 0.5 GPM (non-residential), 1.5 GPM (residential)
• Kitchen sink: 1.8 GPM
2018 adoption:
• Toilets: MaP score (measures toilet performance) of => 600 grams
• Showerheads: 1.8 GPM showerhead (down from 2.0)
2021 adoption:
• Toilets: 1.1 GPF toilets (down from 1.28)
• Faucets: Metered in public restrooms (0.25 gallons per metering cycle) (no longer
allowing non-metered 0.5 GPM)
2022 adoption:
• Graywater: permitting graywater systems for commercial and residential developments –
toilet and urinal flushing only.
For the 2024 adoption, we will be proposing the utilization of the water demand calculator
(WDC). The WDC is a method used to right-size plumbing distribution system in residential
buildings, by using a more accurate method to estimate peak flow rate. The proposed code
requires the WDC be used for multi-unit residential and allows it as optional for single-unit
residential. The current method outlined in the IPC has not been updated in decades to account
for greater fixtures’ efficiency levels installed in today’s buildings. Actual peak flows are much
lower today than the current method uses.
Right sizing plumbing distribution systems inside a building can save on the cost of the meter,
plumbing material costs during construction, and energy and water use after occupancy. A
report commission by multiple cities/counties in the State of California that studied the WDC,
estimates water savings estimates ranges from 234-1,096 gallons per unit/per year and an
energy savings estimate ranges from 2.8-7.7 therms per unit/ per year. It also reduces water
stagnation, which can have a positive impact on water quality within a building.
NEXT STEPS
September-November, staff is presenting and notifying the proposed building codes and local
amendments to numerous Boards and Commissions and external community groups, seeking
additional feedback and participation prior to bringing them to Council for adoption on December
2, 2025. The target effective date of the updated codes is January 1, 2026 with the Colorado
Wildfire Resiliency code effective as of April 1, 2026. The proposed code updates have no impact
to water use, beyond the Water Demand Calculator, which was positively received by the Code
Committee and other stakeholders. It is important that the Water Commission is informed of this
change, but if more information is desired by the Commission, staff can return with a
presentation.
Water
Wastewater
Stormwater
$17,965,890
$19,143,407
$5.0 $10.0 $15.0 $20.0
Budget
Actual
Operating Revenues
Percent over budget: 6.6%
$16,321,092
$16,486,519
$5.0 $10.0 $15.0 $20.0
Budget
Actual
Operating Expenses
Percent under budget: -1.0%
$15,130,402
$15,541,379
$5.0 $7.0 $9.0 $11.0 $13.0 $15.0 $17.0 $19.0
Budget
Actual
Operating Revenues
Percent over budget: 2.7%
$11,236,902
$10,667,409
$5.0 $10.0 $15.0 $20.0
Budget
Actual
Operating Expenses
Percent under budget: 5.1%
$11,697,231
$12,145,041
$5.0 $10.0 $15.0 $20.0
Budget
Actual
Operating Revenues
Percent over budget: 3.8%
$6,321,460
$6,218,277
$5.0 $10.0 $15.0 $20.0
Budget
Actual
Operating Expenses
Percent under budget: 1.6%
Water Fund Revenue
in thousands Percent of Year 58.3%
July Year to Date
Actual Budget
Residential Water Sales $ 2,182 *$ 39 $ 10,103 $ 10,333 $ 230 (A)$ 244 54%55%
Com/Indl Water Sales 1,185 *(36)5,215 5,426 210 (B)261 50%51%
Excess Water Use Surcharge 23 *12 41 89 48 36 9%5%
District Water Sales 319 *59 1,253 1,363 110 (C)74 49%46%
Other Water Sales 57 *48 376 893 516 (D)271 168%79%
PILOTs 221 10 977 1,040 63 48 54%54%
Operating Revenue 3,988 131 17,966 19,143 1,178 934 53%51%
Interest Revenue 260 47 1,489 1,580 91 158 62%59%
Development Fees/PIFs/Contributions 71 (33)729 684 (44)(E)(1,544)55%26%
Financing Sources 0 0 0 0 0 (6)0%
Other Misc.26 2 169 145 (24)(F)(143)50%30%
Total Lapsing Revenue**4,345 147 20,352 21,553 1,200 (601)53%49%
Non-lapsing Revenue 61 85 34
TOTAL**$ 4,406 $ 21,638 $ (566)
Variance Analysis:
(A)
(B)
(C)
(D)
(E)
(F)
*
**
Residential sales are 2.3% over budget and 2.4% more than YTD 2024.
Water Fund 2025 Department Expense
In thousands `Percent of Year 58.3%
July Year to Date
Actual YTD Bdgt Actual
$ 741 $ (124)$ 3,573 $ 3,714 $ (141)(A)
Water Resources 77 29 2,140 2,053 87 (151)$ 2,210 57%
Water Quality Lab 102 12 752 701 51 37 $ 805 60%
Subtotal WR&T $ 920 $ (83)$ 6,465 $ 6,468 $ (3)$ (183)$ 7,255 61%
Transmission & Distribution 411 (60)2,329 2,682 (353)(B)
Water Meters O&M 120 (37)586 588 (2)(60)$ 723 68%
Engineering 40 20 435 261 175 (32)$ 261 31%
Subtotal WEFS 571 (77)3,350 3,531 (180)(674)$ 3,670 57%
Water Conservation 111 16 806 647 159 (D)(112)$ 899 61%
PILOTs 221 (10)977 1,040 (63)(E)
Admin Services - CS&A 498 (0)3,487 3,487 (0)(413)$ 3,487 58%
Other Payments & Transfers 199 (43)1,236 1,314 (78)(F)
Subtotal Operating Expenses $ 2,520 $ (197)$ 16,321 $ 16,487 0 $ (165)$ (1,407)$ 17,691 58%
Debt Service 0 0 0 0 0 0 $ 0
Minor Capital 97 (22)1,477 689 788 (165)$ 1,821 87%
Total Lapsing $ 2,618 $ (219)$ 17,798 $ 17,175 $ 623 $ (1,572)$ 19,512 60%
Non-lapsing Expenses 463 7,565 (5,392)
TOTAL $ 3,081 $ 24,740 $ (6,964)
Variance Analysis:
(A)
(B)
(C)
(D)
(E)
(F)
supplies budget, providing only $42 left in available 2025 budget. Overages offset by underspend in Maintenance, Office and Other supplies.
costs just now hitting associated expense accounts.
on program offerings and demand. WC recently incorporated a bonus incentive to support the Xeriscape Program. While costs historically have been underspent, demand will increase through year-end providing increase in
costs. Additional immaterial underspend offset by Assumed Vacancy Factor.
Wastewater Fund Revenue
in thousands Percent of Year 58.3%
July Year to Date
Actual Budget
Residential WW Sales $ 1,519 *$ 25 $ 10,430 $ 10,587 $ 157 (A)$ 627 59%62%
Com/Indl WW Sales 570 *(20)3,445 3,556 111 (B)170 56%57%
District WW Sales 39 *2 261 274 14 14 62%61%
Other WW Sales 50 *17 148 259 112 (C)29 86%60%
PILOTs 128 1 847 865 18 49 58%61%
Operating Revenue 2,307 26 15,130 15,541 411 888 59%61%
Interest Revenue 163 40 860 955 95 110 65%60%
Development Fees/PIFs/Contributions 50 35 224 962 739 (D)479 185%111%
Financing Sources 0 0 0 0 0 0
Other Misc.28 23 70 125 55 20 107%245%
Total Lapsing Revenue**2,548 125 16,284 17,584 1,300 1,497 62%62%
Non-lapsing Revenue 0 0 0
TOTAL**$ 2,548 $ 17,584 $ 1,497
Variance Analysis:
(A)
(B)
(C)Septage Treatment Charge $110.
(D)
(E)
*
**
Wastewater Fund 2025 Department Expense
In thousands Percent of Year 58.3%
Excludes depreciation and transfers
July Year to Date
Actual
(Over)/
YTD Bdgt Actual
(Over)/ Actual +
$ 512 $ 137 $ 4,427 $ 4,147 $ 279 (A)$ (538)$ 4,713 58%
100 7 738 718 20 (81)814 62%
Subtotal WR&T 611 144 5,165 4,865 300 (620)5,527 59%
161 40 1,367 1,246 121 (209)1,249 50%
47 16 478 273 205 (B)(38)320 39%
Subtotal WEFS 208 56 1,845 1,519 326 (247)1,569 47%
128 (1)847 864 (17)(C)(47)864 58%
348 (0)2,436 2,436 (0)(636)2,436 58%
137 (22)944 983 (39)(D)123 996 48%
Subtotal Operating Expenses $ 1,432 $ 178 $ 11,237 $ 10,667 $ 569 $ (1,427)$ 11,392 56%
0 0 150 150 0 $ 38 150 6%
17 52 811 468 343 (E)$ (317)968 75%
546 1,807 1,699
(A)
(B)
(C)
(D)
(E)
flat by year-end (YE)), Other Professional & Tech $47 ($61 encumbered and will spend by YE), Education & Training $18, Testing Services $10 (awaiting invoices for required biosolids testing; will
spend by YE), and Natural Gas $12 (natural gas boilers have not had to run due to milder winter and spring temps), offset by Personnel $13 (vacancies offset by overages in ICE), Software
Maintenance & Support ($26) (prepaid software agreements for two years in ICE, will be over if not put on balance sheet), Vehicle Repair Services ($30) (Resource Recovery truck has high mileage and
has had repairs, associated with the mileage, required for safety), and Electrical Parts ($15).
needed and planning to spend for modeling work), and Other Professional & Technical $11.
Stormwater Fund Revenue
in thousands Percent of Year 58.3%
July Year to Date
Actual Budget
Single Family Residential SW Services $ 790 *$ 34 $ 5,291 $ 5,501 $ 210 (A)$ 359 61%62%
Non-single Family SW Services 957 *39 6,406 6,644 238 (B)380 60%62%
Operating Revenue 1,747 73 11,697 12,145 448 739 61%62%
Interest Revenue 224 109 807 1,396 589 (C)8 101%55%
Development Fees/PIFs/Contributions 393 320 515 924 410 (D)338 105%88%
Financing Sources 0 0 0 0 0 0
Other Misc.15 14 8 23 15 (E)(29)154%29%
Total Lapsing Revenue**2,380 515 13,027 14,489 1,462 1,056 65%62%
Non-lapsing Revenue 0 0 0
TOTAL**$ 2,380 $ 14,489 $ 1,056
Variance Analysis:
(A)
(B)
(C)
(D)
(E)
*
**
Stormwater Fund 2025 Department Expense
In thousands Percent of Year 58.3%
Excludes depreciation and transfers
July Year to Date
Actual Budget Actual
$ 304 $ 3 $ 1,656 $ 1,604 $ 53 (A)$ (245)$ 1,786 58%
145 (10)1,065 998 66 (B)(50)1,141 60%
107 (94)178 155 22 (C)79 225 44%
400 (0)2,799 2,799 (0)(653)2,799 58%
104 (22)624 662 (38)(D)3 675 39%
Subtotal Operating Expenses $ 1,061 $ (123)$ 6,321 $ 6,218 $ 103 $ (866)$ 6,626 55%
0 0 900 900 0 185 900 30%
470 (376)1,363 958 405 (E)(685)1,195 87%
1,671 7,658 (5,413)
(A)
(B)
(C)
(D)
(E)
Contracts ($29), Solid Waste Services ($23), Tools & Related Supplies ($19), and Land Maintenance Services ($15); (estimated calendarization vs actuals and some are reactionary
operations).
staff time development review investigations and appraisals), offset by Personnel ($62) (investigating, appears surveying time charged here and potentially incorrect labor distributions).
Water Quality Network contract/PO is in progress), and Educational Programs $15, offset by Disposal of Hazardous Material ($77) (all $40 of 2025 budget for spill response inadvertently
all in January, expenses vary greatly based on spills).
Water
Wastewater
Stormwater
$22,393,588
$23,844,826
$5.0 $10.0 $15.0 $20.0 $25.0
Budget
Actual
Operating Revenues
Percent over budget: 6.5%
$18,723,969
$18,857,539
$5.0 $10.0 $15.0 $20.0
Budget
Actual
Operating Expenses
Percent under budget: -0.7%
$17,453,525
$17,915,691
$5.0 $7.0 $9.0 $11.0 $13.0 $15.0 $17.0 $19.0
Budget
Actual
Operating Revenues
Percent over budget: 2.6%
$12,861,707
$12,171,150
$5.0 $10.0 $15.0 $20.0
Budget
Actual
Operating Expenses
Percent under budget: 5.4%
$13,359,464
$13,886,915
$5.0 $10.0 $15.0 $20.0
Budget
Actual
Operating Revenues
Percent over budget: 3.9%
$7,246,561
$7,239,427
$5.0 $10.0 $15.0 $20.0
Budget
Actual
Operating Expenses
Percent under budget: 0.1%
Water Fund Revenue
in thousands Percent of Year 66.7%
August Year to Date
Actual Budget
Residential Water Sales $ 2,421 *$ 159 $ 12,365 $ 12,754 $ 389 (A)$ 392 67%67%
Com/Indl Water Sales 1,522 *49 6,688 6,948 260 (B)311 64%65%
Excess Water Use Surcharge 90 *20 111 179 68 (13)18%10%
District Water Sales 393 *25 1,621 1,756 135 (C)96 63%59%
Other Water Sales 15 *(2)393 907 515 (D)253 171%80%
PILOTs 260 21 1,216 1,300 84 61 67%67%
Operating Revenue 4,701 274 22,394 23,845 1,451 1,100 66%64%
Interest Revenue 215 3 1,701 1,795 93 228 70%67%
Development Fees/PIFs/Contributions 11 (93)833 695 (138)(E)(1,543)56%27%
Financing Sources 0 0 0 0 0 (6)0%
Other Misc.4,876 4,852 193 5,021 4,828 (F)4,719 1732%1049%
Total Lapsing Revenue**9,804 5,035 25,121 31,357 6,235 4,497 78%72%
Non-lapsing Revenue 0 85 34
TOTAL**$ 9,804 $ 31,442 $ 4,532
Variance Analysis:
(A)
(B)
(C)
(D)
(E)
(F)
*
**
Residential sales are 2.3% over budget and 2.4% more than YTD 2024.
Water Fund 2025 Department Expense
In thousands `Percent of Year 66.7%
August Year to Date
Actual YTD Bdgt Actual
$ 488 $ 190 $ 4,251 $ 4,202 $ 49 (A)
Water Resources 154 (48)2,246 2,207 39 (234)$ 2,330 60%
Water Quality Lab 102 (4)850 803 47 (10)$ 894 66%
Subtotal WR&T $ 743 $ 138 $ 7,346 $ 7,211 $ 135 $ (271)$ 7,893 66%
Transmission & Distribution 505 (161)2,673 3,187 (514)(B)
Water Meters O&M 58 25 669 647 23 (33)$ 737 69%
Engineering 43 19 497 304 194 (43)$ 329 40%
Subtotal WEFS 607 (118)3,840 4,137 (298)(821)$ 4,272 66%
Water Conservation 75 65 945 722 224 (D)(82)$ 961 65%
PILOTs 260 (21)1,216 1,300 (84)(E)
Admin Services - CS&A 498 (0)3,985 3,985 (0)(472)$ 3,985 67%
Other Payments & Transfers 188 (32)1,392 1,502 (110)(F)
Subtotal Operating Expenses $ 2,371 $ 32 $ 18,724 $ 18,858 0 $ (134)$ (1,793)$ 19,922 65%
Debt Service 0 0 0 0 0 0 $ 0
Minor Capital 187 (67)1,596 875 721 (240)$ 1,868 89%
Total Lapsing $ 2,558 $ (35)$ 20,320 $ 19,733 $ 588 $ (2,033)$ 21,789 67%
Non-lapsing Expenses 1,350 8,915 (6,205)
TOTAL $ 3,907 $ 28,648 $ (8,238)
Wastewater Fund Revenue
in thousands Percent of Year 66.7%
August Year to Date
Actual Budget
Residential WW Sales $ 1,508 *$ 19 $ 11,918 $ 12,095 $ 176 (A)$ 727 68%71%
Com/Indl WW Sales 645 *8 4,082 4,201 119 (B)194 66%68%
District WW Sales 39 *2 298 313 16 15 70%70%
Other WW Sales 52 *20 179 311 132 (C)35 104%73%
PILOTs 131 2 977 996 19 56 67%70%
Operating Revenue 2,374 51 17,454 17,916 462 1,027 68%70%
Interest Revenue 139 16 983 1,094 112 159 74%69%
Development Fees/PIFs/Contributions 1 (15)240 964 723 (D)434 185%111%
Financing Sources 0 0 0 0 0 0
Other Misc.3,032 3,031 70 3,157 3,087 3,050 2698%6189%
Total Lapsing Revenue**5,547 3,084 18,747 23,131 4,384 4,670 81%82%
Non-lapsing Revenue 0 0 0
TOTAL**$ 5,547 $ 23,131 $ 4,670
Variance Analysis:
(A)
(B)
(C)Septage Treatment Charge $110.
(D)
(E)
*
**
Wastewater Fund 2025 Department Expense
In thousands Percent of Year 66.7%
Excludes depreciation and transfers
August Year to Date
Actual
(Over)/
YTD Bdgt Actual
(Over)/ Actual +
$ 586 $ 109 $ 5,121 $ 4,733 $ 388 (A)$ (545)$ 5,165 64%
99 0 838 817 21 (37)939 72%
Subtotal WR&T 685 109 5,959 5,550 409 (582)6,105 65%
172 8 1,548 1,418 129 (239)1,437 57%
36 22 536 309 227 (B)(42)392 47%
Subtotal WEFS 208 30 2,083 1,727 356 (281)1,829 55%
132 (2)977 996 (19)(C)(56)996 67%
348 (0)2,784 2,784 (0)(727)2,784 67%
131 (16)1,059 1,114 (55)(D)61 1,118 54%
Subtotal Operating Expenses $ 1,504 $ 121 $ 12,862 $ 12,171 $ 691 $ (1,586)$ 12,832 63%
0 0 150 150 0 $ 38 150 6%
41 107 959 509 450 (E)$ (307)1,015 79%
606 2,413 1,599
Stormwater Fund Revenue
in thousands Percent of Year 66.7%
August Year to Date
Actual Budget
Single Family Residential SW Services $ 786 *$ 30 $ 6,047 $ 6,287 $ 240 (A)$ 415 69%71%
Non-single Family SW Services 956 *50 7,313 7,600 288 (B)439 69%71%
Operating Revenue 1,742 80 13,359 13,887 527 854 69%71%
Interest Revenue 187 72 922 1,583 661 (C)48 114%62%
Development Fees/PIFs/Contributions 63 (11)588 987 399 (D)343 112%94%
Financing Sources 0 0 0 0 0 0
Other Misc.2,729 2,726 10 2,752 2,741 (E)2,698 18345%3431%
Total Lapsing Revenue**4,720 2,867 14,880 19,209 4,329 3,943 86%82%
Non-lapsing Revenue 0 0 0
TOTAL**$ 4,720 $ 19,209 $ 3,943
Variance Analysis:
(A)
(B)
(C)
(D)
(E)
*
**
Stormwater Fund 2025 Department Expense
In thousands Percent of Year 66.7%
Excludes depreciation and transfers
August Year to Date
Actual Budget Actual
$ 345 $ (74)$ 1,928 $ 1,949 $ (21)(A)$ (365)$ 2,064 67%
140 7 1,212 1,138 74 (B)(49)1,281 67%
37 (14)201 192 9 (C)164 241 47%
400 (0)3,199 3,199 (0)(746)3,199 67%
99 (16)707 761 (54)(D)(52)765 45%
Subtotal Operating Expenses $ 1,021 $ (96)$ 7,247 $ 7,239 $ 7 $ (1,048)$ 7,550 63%
0 0 900 900 0 185 900 30%
0 7 1,370 958 412 (E)(685)1,195 87%
1,556 9,213 (5,558)
Water Fund Revenue
in thousands Percent of Year 75.0%
September Year to Date
Actual Budget
Residential Water Sales $ 2,222 *$ (11)$ 14,598 $ 14,976 $ 378 (A)$ 499 79%79%
Com/Indl Water Sales 1,483 *55 8,116 8,430 314 (B)418 78%79%
Excess Water Use Surcharge 275 *47 340 454 114 (143)45%25%
District Water Sales 434 *131 1,923 2,190 267 (C)182 79%74%
Other Water Sales 168 *72 488 1,075 587 (D)289 203%95%
PILOTs 248 13 1,451 1,549 98 79 80%80%
Operating Revenue 4,830 307 26,917 28,675 1,758 1,325 79%76%
Interest Revenue 272 59 1,914 2,067 153 260 81%77%
Development Fees/PIFs/Contributions 286 182 937 982 45 (E)(1,305)79%38%
Financing Sources 0 0 0 0 0 (6)0%
Other Misc.6 (19)218 5,027 4,810 (F)4,703 1733%1050%
Total Lapsing Revenue**5,394 530 29,986 36,750 6,765 4,977 91%84%
Non-lapsing Revenue 0 85 34
TOTAL**$ 5,394 $ 36,836 $ 5,012
Variance Analysis:
(A)
(B)
(C)
(D)
(E)
(F)
*
**
Residential sales are 2.3% over budget and 2.4% more than YTD 2024.
Water Fund 2025 Department Expense
In thousands `Percent of Year 75.0%
September Year to Date
Actual YTD Bdgt Actual
$ 495 $ 45 $ 4,790 $ 4,696 $ 94 (A)
Water Resources 1,054 (251)3,048 3,260 (212)(523)$ 3,374 86%
Water Quality Lab 89 9 948 892 56 (10)$ 1,015 75%
Subtotal WR&T $ 1,637 $ (197)$ 8,786 $ 8,848 $ (62)$ (579)$ 9,471 79%
Transmission & Distribution 444 102 3,219 3,631 (412)(B)
Water Meters O&M 155 (70)755 802 (47)(76)$ 850 80%
Engineering 49 18 564 352 212 (62)$ 399 48%
Subtotal WEFS 648 51 4,538 4,785 (247)(1,031)$ 4,885 73%
Water Conservation 145 (34)1,057 867 190 (D)(156)$ 1,023 69%
PILOTs 248 (13)1,451 1,549 (98)(E)
Admin Services - CS&A 498 (0)4,483 4,483 (0)(531)$ 4,483 75%
Other Payments & Transfers 166 (11)1,548 1,668 (121)(F)
Subtotal Operating Expenses $ 3,343 $ (204)$ 21,863 $ 22,201 0 $ (338)$ (2,472)$ 23,085 75%
Debt Service 0 0 0 0 0 0 $ 0
Minor Capital 175 (139)1,632 1,050 583 (350)$ 1,808 86%
Total Lapsing $ 3,518 $ (343)$ 23,496 $ 23,251 $ 245 $ (2,822)$ 24,892 76%
Non-lapsing Expenses 1,077 9,992 (7,020)
TOTAL $ 4,595 $ 33,242 $ (9,842)
Wastewater Fund Revenue
in thousands Percent of Year 75.0%
September Year to Date
Actual Budget
Residential WW Sales $ 1,512 *$ 21 $ 13,409 $ 13,606 $ 198 (A)$ 811 76%80%
Com/Indl WW Sales 629 *(14)4,726 4,830 104 (B)190 76%78%
District WW Sales 39 *2 334 352 18 16 79%78%
Other WW Sales 48 *16 212 359 148 (C)48 120%84%
PILOTs 131 1 1,107 1,127 20 61 76%79%
Operating Revenue 2,359 25 19,787 20,275 488 1,125 77%79%
Interest Revenue 175 52 1,105 1,269 164 188 86%80%
Development Fees/PIFs/Contributions 301 287 254 1,265 1,010 (D)664 243%146%
Financing Sources 0 0 0 0 0 0
Other Misc.4 1 73 3,161 3,088 3,047 2701%6196%
Total Lapsing Revenue**2,839 366 21,220 25,970 4,750 5,025 91%92%
Non-lapsing Revenue 0 0 0
TOTAL**$ 2,839 $ 25,970 $ 5,025
Variance Analysis:
(A)
(B)
(C)Septage Treatment Charge $110.
(D)
(E)
*
**
Wastewater Fund 2025 Department Expense
In thousands Percent of Year 75.0%
Excludes depreciation and transfers
September Year to Date
Actual
(Over)/
YTD Bdgt Actual
(Over)/ Actual +
$ 639 $ 13 $ 5,773 $ 5,372 $ 400 (A)$ (727)$ 5,788 72%
97 3 937 913 24 (42)1,028 78%
Subtotal WR&T 736 15 6,710 6,286 424 (769)6,817 72%
204 (5)1,747 1,622 125 (287)1,625 65%
50 8 594 359 235 (B)(65)459 55%
Subtotal WEFS 255 4 2,341 1,982 359 (351)2,085 63%
131 (1)1,107 1,127 (20)(C)(64)1,127 76%
348 (0)3,132 3,132 (0)(818)3,132 75%
120 (6)1,174 1,234 (61)(D)71 1,237 59%
Subtotal Operating Expenses $ 1,590 $ 13 $ 14,464 $ 13,761 $ 703 $ (1,931)$ 14,397 70%
0 0 150 150 0 $ 38 150 6%
89 (5)1,043 598 445 (E)$ (396)1,075 84%
1,405 3,818 295
Stormwater Fund Revenue
in thousands Percent of Year 75.0%
September Year to Date
Actual Budget
Single Family Residential SW Services $ 788 *$ 32 $ 6,802 $ 7,075 $ 272 (A)$ 463 78%80%
Non-single Family SW Services 958 *44 8,227 8,558 332 (B)500 78%79%
Operating Revenue 1,746 76 15,029 15,633 604 962 78%80%
Interest Revenue 227 112 1,038 1,810 773 (C)38 131%71%
Development Fees/PIFs/Contributions 107 33 662 1,094 433 (D)394 124%104%
Financing Sources 0 0 0 0 0 0
Other Misc.(1)(1)11 2,751 2,740 (E)2,690 18341%3431%
Total Lapsing Revenue**2,079 220 16,740 21,289 4,549 4,084 95%91%
Non-lapsing Revenue 0 0 0
TOTAL**$ 2,079 $ 21,289 $ 4,084
Variance Analysis:
(A)
(B)
(C)
(D)
(E)
*
**
Stormwater Fund 2025 Department Expense
In thousands Percent of Year 75.0%
Excludes depreciation and transfers
September Year to Date
Actual Budget Actual
$ 254 $ 25 $ 2,206 $ 2,202 $ 4 (A)$ (385)$ 2,335 75%
135 (2)1,346 1,274 72 (B)(43)1,430 76%
14 35 249 206 43 (C)190 305 59%
400 (0)3,599 3,599 (0)(839)3,599 75%
88 (5)789 849 (59)(D)(56)851 50%
Subtotal Operating Expenses $ 891 $ 52 $ 8,189 $ 8,130 $ 59 $ (1,134)$ 8,521 71%
0 0 900 900 0 185 900 30%
210 (210)1,370 1,168 202 (E)(895)1,370 100%
3,852 13,065 (8,459)
Water Commission Agenda Item Summary – City of Fort Collins Page 1 of 5
October 16, 2025
Water Commission
STAFF
Randy Reuscher, Manager, Utility Rates
SUBJECT
Items Relating to 2026 Utility Rates
EXECUTIVE SUMMARY
The purpose of this item is to review utility rates with the Water Commission prior to Council
consideration planned for November 3rd adoption. Monthly utility rates are proposed to increase 6% for
STAFF RECOMMENDATION
Staff is requesting support from the Water Commission regarding water, wastewater, and stormwater
rate updates for 2026 and recommends adopting the changes as proposed.
Suggested Motion: I move that the Water Commission approve a recommendation to Council to support
the proposed changes to the 2026 water, wastewater, and stormwater utility rates, to become effective
January 1, 2026.
BACKGROUND / DISCUSSION
2026 Utility Rates
The revenues needed to support the ongoing operation and maintenance costs of providing each of the
four utilities services to customers are collected through monthly utility rates. As costs change over time,
it is necessary to adjust rates to reflect those changes. Long-term financial planning is important to
ensure revenues are adequate and reserves are available to maintain and replace infrastructure in a
timely fashion to continue to provide high quality and reliable services to our customers. Frequent review
and updating of the cost-of-service allocation models behind the monthly utility rates maintains equity
across rate classes and helps to reduce the impacts on customers of higher utility rates by providing
gradual, modest rate adjustments over time rather than less frequent and larger rate adjustments. These
actions help ensure the delivery of current and future utility services occurs in a fiscally responsible
manner, balancing both costs and levels of service with affordability and prudent planning and
investments.
Water Commission Agenda Item Summary – City of Fort Collins Page 2 of 5
A summary of the proposed rate increases for the four utility services are shown in the table below.
Water
Staff are proposing a 9% retail rate increase for the Water Fund in 2026. Water rate increases are
primarily driven by the cost of capital investment, particularly construction of the Halligan Water Supply
Project and maintaining replacement of the water distribution system.
In the 2026 budget, capital projects account for 38% of the total Water Fund expenditures. This
percentage is expected to increase in the coming years and is a significant driver for future rate
increases in the Water Fund. Debt financing for the Halligan Water Supply Project will be the major
component impacting substantial water rates over the next 3-5 years while the project progresses
towards and starts construction. Development of the Water Fund’s comprehensive Capital Improvement
Plan is underway and will inform a long-term rate forecast in advance of the 2027-28 budget process.
Wastewater
Staff are proposing an 8% retail rate increase for the Wastewater Fund in 2026. In addition to rate
increases needed for ongoing operational inflationary pressures, the Drake Water Reclamation Facility
(DWRF) recently completed a comprehensive condition assessment and is in need of significant capital
investment. The report indicates that 39% of the plant is beyond it’s useful life, and 45% of the plant is
in fair condition
The upcoming 10-year Capital Improvement Plan may include plans for a large revenue bond debt
issuance needed for reconstruction of the DWRF Preliminary Treatment Facility, and the combined
Wastewater-Water Quality Laboratory Project.
Stormwater
Staff are proposing a 6% retail rate increase for the Stormwater Fund in 2026. The Oak Street
Stormwater Improvement Project revenue bond issuance of $40M in 2023 increased debt service
payments for this fund. Additional capital improvement budget capacity is being created to continue
capital replacement and improvements to the stormwater infrastructure system.
Bill Impacts and Front Range Comparisons
The table below shows the impacts of the proposed rate change to the average residential monthly bill.
Water Commission Agenda Item Summary – City of Fort Collins Page 3 of 5
Under the proposed rate changes, a residential customer’s total utility bill, for a customer receiving all
four municipal utility services, would increase by 7.1%, or $13.48 per month.
The table below compares typical residential electric, water, wastewater, and stormwater monthly utility
bills across neighboring utilities along the Front Range, based on proposed 2026 rate adjustments and
charges. In total, Fort Collins Utilities comes in the lowest at $230.26 for all four services. With proposed
increases for 2026, Fort Collins will remain the lowest overall, as there are known increases proposed
amongst the other bordering utilities for 2026, with some of them being substantially higher than the
percentage increases proposed for customers within our community. Note that community comparisons
use different usage thresholds than the Fort Collins customer averages shown in the bill impact table
above.
Water Commission Agenda Item Summary – City of Fort Collins Page 4 of 5
2026 Budget Revisions: Customer Information System Operational Costs
Utilities requests a 2026 budget revision of $702,480 to support 2026 operational costs for the existing
Utilities Customer Information System (CIS) and billing software. The new CIS continues to be developed
with a new go-live date of May 22, 2026. Due to the project extension, the existing CIS and billing
software needs to be extended through 2026. The $702,480 provides funding for unanticipated
operational costs of the legacy CIS and associated billing software into 2026. The software system
supports billing of Utility customers and tracking of customer payments and amounts due.
The individual Utilities enterprise funds will cover their respective shares of the software costs through a
transfer to the internal Customer Service & Administration Fund.
2026 Budget Revisions: Halligan Environmental Mitigation Credits
City’s Water Utility requests an additional appropriation of $10,357,500 in the Water Utility Fund to
purchase needed stream credits and wetland credits (collectively referred to as environmental mitigation
credits) in support of City’s Water Utility receiving a finalized mitigation plan by the United States Army
Corp of Engineers (USACE).
The Halligan Water Supply Project will result in impacts to both wetlands and streams. Pursuant to
requirements of the Clean Water Act, City’s Water Utility is required to undertake mitigation. Among the
project mitigation measures that were proposed, USACE directed the City to purchase environmental
mitigation credits from an accredited bank. Required wetlands and stream credit amounts will be part of
the finalized mitigation plan that City’s Water Utility is currently working on with USACE. The finalized
mitigation plan is required to be approved by USACE for commencement of construction of the Halligan
Water Supply Project.
The USACE prefers mitigation through bank credits as these credits are backed by legal instruments that
ensure long-term protection and monitoring. City’s Water Utility entered into a mitigation credit
reservation and purchase agreement in June 2024 associated with the North Fork Poudre Mitigation
Bank. The 2024 agreement secured 19.37 acres of wetland credits and 1,220 stream credits and will be
revised up to include a total of 19.9 wetland credits and 1,514 stream credits. The City has spent
$1,471,340 to date, with an additional $6,931,660 to be spent from December 2025 through 2027
dependent on timing of credit releases for the North Fork Poudre Mitigation Bank. While City’s Water
Utility anticipated environmental mitigation credits as part of the finalized mitigation plan approved by
USACE, the proposed quantity has increased substantially due to recent determinations by USACE that
the original preservation/conservation stream mitigation plans are no longer sufficient to meet current
federal requirements.
In response to the additional stream credit requirements, discussions are underway with the Moraine
Bank in Rocky Mountain National Park, and other potential banks on the North Fork, to purchase
additional stream credits. The Water Utility is intending to be under contract prior to 2025 year-end,
securing upwards of 6,834 in stream credits, totaling an estimated $14,020,350.
To keep the dam design work and environmental mitigation projects on schedule, the Water Utility plans
to spend the project’s remaining $7.4 million unencumbered balance by the end of Q2 2026. An
additional $10,357,500 is needed to meet 2026 obligations in purchasing environmental mitigation
credits.
Water Commission Agenda Item Summary – City of Fort Collins Page 5 of 5
In July 2025, the City submitted a request for $100 million under Colorado Water Conservation Board’s
Water Project Loan Program in support of funding the Halligan Water Supply Project. Provided City
Water Utility is successful in the pursuit of $100 million under the Water Project Loan Program, the
earliest funds would be available for appropriation by City Council is August 2026. The Water Fund 2025
reserves are available for the $10,357,500 appropriation in advance of loan acceptance.
CITY FINANCIAL IMPACTS
The 2026 City Manager’s Recommended Budget includes these proposed increases in revenues available
for the budget. The water, wastewater, and stormwater increases would contribute to operating and
maintenance costs, as well as assist in funding future capital costs incorporated in the most recent capital
plan update, including building reserves to assist with future debt issuances for large capital projects.
PUBLIC OUTREACH
The required electric outside city limit postcard will be mailed in early October and a notice was posted in
the Coloradoan. Rates and fee presentations will be shared at the Business Accounts meeting for all
commercial customer accounts on November 18, 2025. An annual rate brochure will go out to customers
in late November or early December, along with updated information posted to the utility website.
ATTACHMENTS
1. Presentation
2
Direction Sought
Does the Water Commission support the following proposed
changes to the 2026 water, wastewater, and stormwater utility
rates, to become effective January 1, 2026?
01
32026 OneWater Budget
Capital Investment
•Halligan Water Supply Project
•Water Main Replacement
Program
•Drake Water Reclamation
Facility Projects
•OneWater Laboratory Design
Operations
•OneWater Operator &
Engineering
•GIS Utility Network
Capital & Asset
Management
38%
Plant Operations
14%
Cust Serv & Admin
14%
Transmission &
Collection
12%
Planning &
Sciences
8%
PILOTs
4%
Engineering
3%
Internal Transfers Out
6%Other Misc
1%
2026 Expenses - $103.7M
42026 Light & Power Budget
PRPA Wholesale
•6.3% Increase
Capital Investment
•Cable Replacement
•Transformers
Operational Technology
•Distributed Energy
Resource Management
(DERMS)
Purchase Power
PRPA
66%
Capital & Asset
Management
10%
L&P Operations
7%
PILOTs
5%
Cust Serv & Admin
4%
Energy Services
4%
Internal Transfers Out
2%
Purchase Power
Community
Renewables
2%
Other Misc
0%
2026 Expenses - $183.5M
52026 Budget Revisions
Halligan Project Mitigation Credits $10,357,500
Wetland Credits Requirement (17.94 acres); est. $3.1M
Stream Credits Requirement (8,348 ft); est. $19.3M
Poudre North Fork Mitigation Bank
•Under contract
•19.9 wetland credits
•1,514 stream credits
RMNP Moraine Mitigation Bank
•6,834 stream credits needed
•Contract pending
62026 Budget Revisions
Halligan Project Mitigation Credits: Timeline
•Mitigation plan must be approved before construction
•Record of Decision (ROD) expected:August 2026
•Pending CWCB Water Project Loan ($100M), appropriation of Water
Fund Reserves
•Operational budget needed for continuing legacy
systems until go-live
•CIS replacement go-live date May 2026
2026 Budget Revisions 7
Customer Information System (CIS)
Operational Extension $702,480
82026 Utility Rates
Utility 2026 Rate Increase
Electric 6%
Water 9%
Wastewater 8%
Stormwater 6%
2025-2026 City Manager's Recommend Budget
92026 Utility Rates
102026 Utility Rates
112026 Utility Rates
12Utilities Affordability Assistance
Retrofit Programs
•Larimer County
Conservation Corps
Water and Energy
Program (LCCC)
•Colorado Affordable
Residential Energy
(CARE)
Reduced Rates
•Income-Qualified
Assistance Program
LEAP
&
IQAP
One-Time Payment
Assistance
•Payment Assistance
Fund
•Utilities Emergency Fund
Outreach
•Water Conservation
resources
•Energy Services programs
•Utilities Insights Newsletter
•Direct customer
engagement
13Utilities Outlook & Initiatives
2027/28 Budget Prep
Capital Planning
•Enterprise Project Management Office (EPMO)
•Strategic Asset Management Plans
•Asset Replacement Analysis
Major Projects
•Halligan Water Supply Project
•Drake Water Reclamation Facility Preliminary Treatment
•OneWater Quality Lab
•Drake Substation
•PRPA Integrated Resource Plan
Long-Term Financial Modeling
•Capital Financing
•Long-Term Rate Scenarios
14
Suggested Motion
I move that the Water Commission approve a
recommendation to Council to support the
proposed changes to the 2026 water, wastewater, and
stormwater utility rates, to become effective January 1,
2026.
01
For More Information, Visit
THANK YOU!
fcgov.com/utilities