Water Rate Study

The Town of Frederick provides water services to residents living on the east side of I-25. The drinking water provided is sourced from Central Weld County Water District (CWCWD) which treats water for the Town per agreement. The Town’s water rates are set to cover the costs of operating and maintaining the water system, funding necessary improvements, securing water resources, and purchasing treated water. Over the past decade, the Town implemented an annual 5% increase in water usage rates to address these growing expenses. However, the rising costs to ensure reliable service and a steady water supply are expected to surpass future revenue projections.

The Board of Trustees approved a water rate study to ensure sufficient funding to address rising operational costs, maintain and improve our water system through critical infrastructure projects, and support the Northern Integrated Supply Project to secure a reliable water source for future growth and enhanced reliability.

  • Revenue Generation - Ensuring sufficient funds are generated to cover expenses
  • Affordability - Balancing the need for revenue and the ability of residents to pay
  • Water Conservation - Encouraging responsible water usage through rate structures
  • Equitable Recovery of Revenues - Distribution of costs

Cost of Service Factors

  • Geographic location/density
  • Size of treatment facilities
  • Customer base/growth
  • Age of assets
  • Site-specific regulatory requirements
  • Type of treatment
  • Standard/quality of treatment
  • Prior rate increases
  • Development fees/impact fees/plant investment fees
  • Participation in the Northern Integrated Supply Project (NISP)
  1. What is the Water Rate Study, and why is it important?
  2. How was the community engaged in this process?
  3. What are the long-term financial concerns for the Water Fund?
View All FAQs

Based on the Water Rate Study findings, three new rate structures were considered to ensure fair, affordable, and sustainable water rates for our community. The options varied in assessing usage and base rates, promoting water conservation, and equitable cost distribution. 

At the January 14, 2025, meeting, the Town of Frederick Board of Trustees approved Resolution 25-R-08, amending water service charges to introduce a usage-based water rate adjustment. This thoughtful update, which reflects valuable resident feedback gathered through surveys and public comments, will take effect starting with the February billing cycle (covering water usage from January 20 to February 20, 2025).

Here’s how the new rates will work:

  • Lower use: Those conserving water and using 5,000 gallons or less will see a decrease in their bill.
  • Average use: For households using approximately 8,000 gallons (our average), bills will increase by about 9%.
  • Higher use: Residents using more than 8,000 gallons will see slightly larger increases, encouraging mindful water use.

This adjustment comes after a recent comprehensive Water Rate Study identified three potential rate structures. Resident feedback played a crucial role in the Board’s decision to approve the option that best balances the community’s needs with the financial requirements necessary to maintain reliable, high-quality water services. Thank you for sharing your input and helping shape decisions that support a thriving, sustainable Frederick. 

The graph below compares Frederick's current rate and proposed options to surrounding municipalities. A bar chart comparing single-family monthly water bills for 8,000 gallons across various cities.Option 1: This option is an update to the current fee schedule structure. The monthly base fee includes the first 0-3,000 gallons, and water usage above that is paid per tier of 1,000 gallons used. 

Option 2: Differs from the current structure by changing the usage rate assessment from tap size to use. Instead of having different rates for different volume tiers for each tap size, there is a rate for residential water users and a rate for non-residential water users. Rates are still identified in the fee schedule for Prairie Greens, schools, the softball park, and bulk (hydrant) water. No water is included in the base rate. This will reduce the monthly cost significantly to those who are not using a lot of water each month like many who have small families or are on a fixed income. The previous Board wanted to include the first 3,000 gallons of water in the base rate to assist those on a fixed income. The base rate is about 50% less than the current base rate.

Option 2 Update (11/27/2024): The Board of Trustees held a work session on November 12 to review the findings of the water rate study, which was completed in anticipation of a water rate adjustment in early 2025.  Based on public feedback and staff recommendations, Option 2 has been identified as the preferred rate structure. How will this affect Town of Frederick water customers? You might question how the water rate changes will affect your bill. To help, we've provided a *table below with estimated costs based on your monthly water usage.

Option 3: Differs from the current structure by changing the usage rate assessment from tap size to use. Instead of having different rates for different volume tiers for each tap size, there is a rate for residential water users and a rate for non-residential water users. Rates are still identified in the fee schedule for Prairie Greens, schools, and the softball park, and bulk (hydrant) water. No water is included in the base rate. This will reduce the monthly cost significantly to those who are not using a lot of water each month like many who have small families or are on a fixed income. The previous Board wanted to include the first 3,000 gallons of water in the base rate to assist those on a fixed income. The base rate is about 50% less than the current base rate. This structure also includes different rates for summer and winter water use. Customers who have low water use in the summer will be able to maintain a lower utility bill and those who are high water users which have a larger impact on the system will have higher utility bills. 

*Residential Monthly Bill Estimate for Option 2

Residential Monthly Bill Estimate Option 2
Water Usage in Gallons Per Month Current Billed Rate $ Proposed Bill Rate $ Difference in Rate $
0 31.57 16.28 -15.29
1,000 31.57 20.41 -11.16
2,000 31.57 24.54 -7.03
3,000 31.57 28.67 -2.90
4,000 34.77 32.80 -1.97
5,000 37.97 36.93 -1.04
6,000 42.40 43.12 0.72
7,000 46.83 49.31 2.48
8,000 51.26 55.50 4.24
9,000 55.69 61.69 6.00
10,000 60.12 67.88 7.76
11,000 64.55 74.07 9.52
12,000 68.98 80.26 11.28
13,000 73.41 86.45 13.04
14,000 77.84 92.64 14.80
15,000 82.27 98.83 16.56
16,000 88.06 105.02 16.96
17,000 93.85 111.21 17.36
18,000 99.64 117.40 17.76
19,000 105.43 123.59 18.16
20,000 111.22 129.78 18.56
21,000 117.01 140.61 23.60
22,000 122.80 151.44 28.64
23,000 128.59 162.27 33.68
24,000 134.38 173.10 38.72
25,000 140.17 183.93 43.76
26,000 148.22 194.76 46.54
27,000 156.27 205.59 49.32
28,000 164.32 216.42 52.10
29,000 172.37 227.25 54.88
30,000 180.42 238.08 57.66
31,000 188.47 248.91 60.44
32,000 196.52 259.74 63.22
33,000 204.57 270.57 66.00
34,000 212.62 281.40 68.78
35,000 220.67 292.23 71.56
36,000 228.72 303.06 74.34
37,000 236.77 313.89 77.12
38,000 244.82 324.72 79.90
39,000 252.87 335.55 82.68
40,000 260.92 346.38 85.46