Littleton sewer plan would spread rate increases through 2035

Littleton is considering a revised sewer plan that would raise revenue 15% in 2027 and 2028, 11% in 2029 and 2030, and 10% annually from 2031 through 2035. The plan would address about $256.2 million in sewer needs while limiting planned debt issuance to $65 million, but the City Council did not adopt rates during its Aug. 11 study session.

The schedule is lower at the start than an earlier model, which called for 25% increases in 2027 and 2028. The revised plan's cumulative increase over the study period was described as roughly 138%, compared with about 92% under the earlier model. Those figures are cumulative sums of annual percentage adjustments, not projections of individual customer bills, according to the city's revised rate-study presentation.

The tradeoff is lower initial increases but more borrowing costs over a longer repayment period, city staff and consultants told the council. The plan would use reserves, alter project schedules and rely on loans, including federal WIFIA financing, to moderate early increases. Some line-replacement, pipe-patching and lining programs would be spread over five years instead of four.

The 10-year sewer program includes operating costs, debt service and capital projects. About $180 million is associated with South Platte Renew, the jointly owned Littleton-Englewood wastewater treatment facility. The plan also includes repairs or replacement of about 24 miles of sanitary sewer.

The proposed sewer structure would replace the largely fixed residential charge with a fixed fee plus a usage charge. The 2027 example for Littleton customers is $15.25 per residential or commercial bill plus $4.10 per 1,000 gallons. Multifamily customers would pay $11.44 per dwelling unit per bill plus the same volume charge. Residential and multifamily usage would be based on average January-through-March water consumption; commercial customers would be billed on actual water use.

City examples put a proposed inside-city single-family sewer bill at $23 a month for 2,000 gallons of average winter use and $40 for 6,000 gallons. Multifamily examples range from $20 to $36 per unit. Staff estimated the average single-family increase at about $1.66 a month under the flexible structure, compared with about $3 under a fully fixed rate. Commercial increases were estimated at $4 to $8 a month, depending on use and billing structure. The materials do not show how many customers would pay more or less.

Stormwater rates would be considered separately. The proposal calls for 60% revenue increases in both 2027 and 2028, followed by annual increases of about 5.2% through 2035. The 10-year stormwater capital plan totals about $72.4 million and includes an $8 million Rangeview Gulch project, 15 miles of storm-drain replacement, $10.8 million in revenue bonds, $12 million in state loans and about $49.6 million from other revenue, including rates and tap fees.

For a typical developed single-family property, the proposed 2027 stormwater charge is $199.26 annually, up $74.72 from $124.54, or about $6.23 a month when annualized. Developed multifamily and nonresidential properties would also be charged $1,659.70 per paved acre and $414.93 per landscaped acre. Undeveloped parcels would have separate rates.

Littleton currently bills sewer and stormwater charges annually. Monthly, bimonthly, quarterly, semiannual and annual billing options remain under consideration. Staff is also studying an income-qualified discount program that could use eligibility through Xcel Energy's Low-income Energy Assistance Program. Eligibility rules, the discount amount, administrative costs, funding source and effects on multifamily and master-metered properties have not been established.

The agenda listed the Aug. 11 utility-rate item as a discussion and did not include rate adoption. The discussion record shows no motion or recorded vote adopting the rates. Public outreach is scheduled to continue with an open house from 4 to 6 p.m. Aug. 26 at Littleton Center, 2255 W. Berry Ave., and a virtual meeting from 5:30 to 7 p.m. Sept. 3. Council consideration is targeted for September or October, with implementation at the beginning of 2027 if rates are approved through the budget process. The city's public project timeline lists the outreach and budget dates. The proposed rates, billing schedule and affordability program remain subject to change.