Englewood board approves $34.6 million 2027 water budget with projected funding gaps

The Englewood Water and Sewer Board approved the city’s 2027 water, sewer and stormwater enterprise-fund budgets Sept. 15, including an approximately $34.6 million water-fund budget with $16.5 million for capital projects.

The budget model projects water-fund gaps of about $12.5 million in the near term and $19.5 million over the longer term if Englewood continues investing at the level identified in its master plan. Planned projects include City Ditch piping, a Denver Water emergency interconnect, treatment and pump-station improvements, advanced metering and flat-rate customer meter conversions.

The Water and Sewer Board’s recorded meeting discussion shows that the model assumes annual utility-rate increases of 4.5% and includes a proposed $2-per-month increase in the residential Capital Improvement Fee, from $17 to $19.

Staff also presented, but the board did not make a final recommendation on, a three-tier residential water-rate structure:

• $3.75 per 1,000 gallons for the first 6,000 gallons;
• $4.30 per 1,000 gallons for 6,000 to 12,000 gallons; and
• $6.45 per 1,000 gallons above 12,000 gallons.

The proposed structure would replace the current two-tier system. Staff said it is intended to preserve an overall 4.5% increase in water revenue while shifting more costs toward discretionary outdoor irrigation. About 85% of residential bills are expected to remain within the first two tiers during the year, staff said. The proposed rates and fee have not been finally adopted, and the effect on an individual bill would depend on water use.

Staff is expected to return with a refined rate proposal in October. City Council is expected to consider rates and fees in November, with implementation targeted for Jan. 1, 2027. The city’s Sept. 15 meeting packet listed the proposed budgets and said rates and fees would be considered separately from the budget decision.