Frequently Asked Questions

The Town conducted a Water Rate Study in 2023-24 to address rising costs and ensure there is enough money to:

•    Maintain and improve the water system
•    Purchase water rights
•    Participate in major projects like NISP

The study found that current water rates fall short of providing enough revenue. The rate adjustment would:

•    Cover costs for NISP (79% of the increase)
•    Address higher operations and maintenance costs (9.3%)
•    Support new capital improvement projects (11.7%)

• The community outreach process began in August 2024 with a survey and comment form posted on the Town website. This allowed residents to review findings from the water rate study and select their preferred water rate option.
• From August 2024 through January 2025, the Town provided regular updates across its communication channels, keeping residents informed about the status of the water rate adjustment, estimated rates for the most favored option, and opportunities to share feedback.
• The survey results, including the community’s preferred water rate option and resident comments, were presented to the Board of Trustees for consideration in adopting a water rate adjustment.  

The Water Fund relies on revenues from Water Share Fees (developers pay for water rights in the building permit process). These revenues, called Capital Contributions, are unpredictable and hard to plan for. Here’s a look at how these revenues have changed:

•    2019: $4,930,586

•    2020: $7,483,977

•    2021: $11,731,714

•    2022: $6,239,219

•    2023: $6,887,160

•    2024 (estimate): $2,705,343

•    2025 (estimate): $2,895,000

As you can see, these revenues are decreasing, which impacts the fund’s ability to pay for future projects.

•    The Water Fund’s 2023 year-end Net Position (the difference between assets and liabilities) is $133,677,506.

•    Of this, $97,827,177 is invested in capital assets (such as equipment, infrastructure, and water rights).

•    The Unrestricted Net Position, which can be used for projects or other expenses, is $35,850,329.

•    Colorado Big Thompson Unit Water Purchases: ~$2,100,000 annually - Why are Colorado Big Thompson Unit Water Purchases necessary?

The Town's water supply plan identified purchasing at least 30 units of CBT each year. This purchase allows the Town to build up units to meet the existing obligations to provide CBT in lieu to meet previous agreements while also building a credit bank to provide flexibility for commercial development incentives and to be used within the Town's Water Allocation and Reservation program. 

•    Northern Integrated Supply Project (NISP): ~$2,200,000 annually - What is NISP? The Northern Integrated Supply Project (NISP) is a critical project that will:

Provide the Town with 2,600 acre-feet of water annually for drinking water and some non-drinking uses after wastewater treatment.

Help ensure a long-term water supply for the growing community.

Participation in NISP is expensive, and the Town may need additional funding (like bonds) if it increases participation to secure more water.

•    Windy Gap Storage: ~$900,000 annually - Why is Windy Gap Storage necessary?

The Town funds Windy Gap Storage because Windy Gap water cannot be diverted for treatment every year due to variability. To address this, the Town needs storage for available Windy Gap water to use in future years when it is unavailable. Per decree requirements, this water can only be stored in specific reservoirs, with limited capacity. The Town has an agreement with the owners of Dry Creek Reservoir, which meets these requirements. Over the past few years, the Town has been diverting water into this storage. This year, the storage is expected to reach capacity, enabling the Town to begin treating Windy Gap water for delivery to residents.

These three obligations alone will use up the unrestricted funds in less than seven years.  

The Northern Integrated Supply Project (NISP) is a critical project that will:

•    Provide the Town with 2,600 acre-feet of water annually for drinking water and some non-drinking uses after wastewater treatment.

•    Help ensure a long-term water supply for the growing community.

Participation in NISP is expensive, and the Town may need additional funding (like bonds) if it increases participation to secure more water.