Arvada approves 2027 utility rate increases, adding an estimated $11.73 a month for typical household

Arvada City Council approved 2027 increases to water, wastewater and stormwater rates in 7-0 votes Oct. 20, completing a decision that was pending when the plan was first reported. Staff estimate the changes will add about $11.73 a month for a typical in-city single-family household, the council meeting record shows.

The approved adjustments include an 8% increase in water’s usage-based rate and a $4 increase in its two-month service fee; wastewater’s usage-based rate will rise 6.3%, with a $3 increase in its two-month fee; and stormwater rates will rise 35%. Staff said the water and wastewater changes would increase their respective utility funds’ revenue by 9.2% and 8.9% in 2027.

Staff’s estimated monthly increase for a typical household breaks down to $5.90 for water, $3.33 for wastewater and $2.50 for stormwater. The estimate is for an in-city single-family home; the July 28 rate workshop used an example household consuming 90,000 gallons of water annually. Actual bills vary with water use and customer type.

The city projects the rate changes will bring in an additional $3.93 million for water, $1.85 million for wastewater and $1.81 million for stormwater. Staff said the added revenue would support utility debt service and capital work, including major water-system investments such as the Gross Reservoir expansion and replacement of an aging treatment plant. Those figures are projections, not amounts already collected.

At the July workshop, staff said the recommended plan would fund all projects rated red, orange or yellow under the city’s utility-prioritization system. Staff described a red water-line project serving two neighborhoods with 85 reported breaks and a critical health care facility, including a dialysis center, on a single water feed. An orange project involved about 50 breaks across two neighborhoods; yellow projects were proactive replacements for infrastructure nearing the end of its useful life. Staff said the three utility funds had 95 projects, with 44 completed or nearing completion and 14 under construction at the time of the workshop.

At that workshop, staff said the city’s long-range roadmap had projected roughly 12% to 14% annual rate-and-fee adjustments beginning in 2022, while actual increases in recent years were below those forecasts. Nearby rate comparisons offer limited context because billing structures differ: Westminster reported that its 2025-26 water and sewer schedule would add $3.47 a month in winter and $6.14 in summer for an average resident; Golden approved 6.2% water and wastewater increases effective Jan. 1, 2026; and Denver uses different measures for storm-drainage and wastewater charges. These figures are not a direct ranking against Arvada’s approved changes.

Water and wastewater bills combine fixed and usage-based charges, so customers who use more or less water will see different increases. Commercial, multifamily, irrigation and other customers have different schedules. Staff also cited hardship credits, payment plans and equalization billing as customer protections.

Arvada bills water, wastewater and stormwater every two months. The city’s utility billing information says annual rate adjustments take effect with the first bill of the year. The Oct. 20 meeting record does not state the ordinances’ exact effective dates.