Castle Rock council introduces proposed water and development-fee increases

Castle Rock Town Council introduced a proposal Sept. 15 that would raise water and development-related fees in 2027. The council took no final vote on the changes.

The proposal would increase typical residential water, water-resources, stormwater and wastewater charges by a combined 4.82%, according to the Castle Rock Water rates-and-fees presentation. The presentation estimates that a typical residential customer’s annual bill would rise from $1,571 to $1,647 — an increase of $76, or about 4.84%.

The proposed rate changes are:

• 5% for water;
• 8% for water resources;
• 5% for stormwater; and
• 1% for wastewater.

The proposed system-development-fee changes are larger in some categories. Water system-development fees would rise 20%, water-resources fees 7.5% and wastewater fees 8.5%. Stormwater fees would rise 156% in the Cherry Creek basin and remain unchanged in the Plum Creek basin. The town estimates that the combined system-development fees would increase 13.5% in Cherry Creek and 9.49% in Plum Creek.

The fees for new residential development would continue to use a sliding scale based on home size and whether a home has irrigation. The presentation includes examples for homes between 2,000 and 2,499 square feet but does not give a single total fee for a typical detached home.

During the meeting, staff said the rates-and-fees item was an introduction rather than a vote. The proposal is scheduled for consideration by the Water Commission before returning to the council for first and second readings in October, the meeting transcript records. Councilmember Hollingshead directed staff to return with comparisons showing 2024 and proposed 2027 fees for 2,000-, 4,000- and 6,000-square-foot homes.

Why the town says fees are needed

Castle Rock Water’s five-year capital plan calls for nearly $147 million in spending from 2027 through 2031, including about $46.2 million for the water system, $75.6 million for long-term water resources, $6.7 million for stormwater and $18.4 million for wastewater.

The plan includes expansion of the Plum Creek Water Purification Facility, water-supply wells, pipelines, wastewater collection and sewer rehabilitation. Town staff said the proposed increases would support renewable-water investments, account for rising construction costs and maintain operating reserves. Staff also said the system-development-fee model is intended to have growth pay for infrastructure needed to serve new development.

Fewer projected homes in the Cherry Creek basin mean some costs would be spread across fewer new connections, staff said, contributing to the larger proposed increase there. The town’s proposed budget says the water-resources increase is tied in part to the cost of securing renewable supplies and includes a goal of reaching 75% renewable water by 2050.