Englewood proposes utility rate increases as draft budget keeps $680,000 deficit
The proposed 2027 budget would leave about $15.3 million in unrestricted reserves, while water restrictions and higher utility rates remain subject to future action.
Englewood’s proposed 2027 budget retains an approximately $680,000 general-fund operating deficit after transfers and calls for higher water, sewer and stormwater rates. The proposals are not final: a public hearing is scheduled for Sept. 21, with ordinances anticipated in October.
The proposal would leave about $15.3 million in unrestricted reserves, or 16.9% of revenues, slightly above the city’s 16.7% target. A pending labor-arbitration matter could require roughly $250,000 more if the union prevails, staff told City Council during an Aug. 10 study-session presentation. The supplied record does not show the arbitration’s outcome or final cost.
An Aug. 11 Water and Sewer Board packet proposes mandatory water-use restrictions for Englewood and its extraterritorial water customers. The packet does not specify the restrictions, implementation date, exemptions, enforcement provisions, penalties or projected water savings.
The proposed water and sewer rates would each increase 4.5% in 2027, while connection fees for both services would rise 3.92%. The monthly water Capital Investment Fee for a single-family residential customer would increase from $17 to $19, while the $5 Drinking Water Loan Fee would remain unchanged. The proposed rates would take effect Jan. 1, 2027, if approved by City Council.
The proposed stormwater rate would increase 6% for one year, which staff described as about 35 cents more per month. Staff said the increase is needed to meet debt-coverage requirements and fully fund operations. The packet does not provide a typical residential bill or enough usage information to calculate a precise customer-level impact.
The proposed 2027 enterprise-fund budgets total $34.64 million for water, $28.17 million for sewer and $7.68 million for stormwater. Compared with the 2026 amended budgets, the water budget would fall $20.46 million, or 37%; the sewer budget would rise $51,077; and the stormwater budget would increase $1.67 million, or 28%. The water-budget change does not establish a Reach 2-only cost or a revised total price for the City Ditch project.
City Ditch Reach 2 is separate from the utility-rate and restriction proposals. Utilities staff said the program is budgeted at about $16 million across four reaches; Reaches 1, 3 and 4 are complete, and staff is targeting fall 2027 to finish Reach 2. Reach 2A is under contract, with construction expected after the 2026 irrigation season. Reach 2B near Lynn Hart Lake is being redesigned to address stormwater flows from Littleton and determine whether construction should go around or through the pond.
The agenda also proposes up to $402,580 for a temporary BNSF occupancy permit tied to Reach 2A and a $300,000 increase in staff-managed contingency for Phase 2 improvements at the Allen Water Treatment Plant. The supplied records show proposed and scheduled actions, not votes, adopted ordinances or executed permits.