Another water rate hike is on the horizon for Arvadans — with this next one set to up rates by at least 10% — as the city works to address its ongoing issues with aging water infrastructure. In service of that goal, Arvada’s City Council approved the city team to look into bond and debt funding as an option to solve mounting water system issues.
Rates went up by 12.3% in 2023, followed by another 12% increase this year. While council has not yet been presented with or voted on this year’s increase, a 10% increase for water and sewer services, along with a 5% increase for stormwater, is forecasted in the city’s 10-year strategic plan for 2025.
At city council’s July 22 workshop, council members expressed support for the city team looking into bond and debt funding sources to deal with the aging infrastructure — chief amongst which is the city’s declining water treatment plants.
“We are doing very well with what we have to work with, and that is due to staff… bonds and debts are the way to go, and Arvada is well positioned to pay those back,” council member Sharon Davis said. “Given the age of some of the infrastructure around the city and the needs that we see as we grow and build onto the city, we definitely need to do the ‘taking lasting care’ part of our infrastructure.
“The stuff that nobody sees is really important,” Davis continued.
City staff members will come back to council on Aug. 26 with rate and fee range, while a public hearing for the rates and fees will take place on Oct. 21.
Before council approved city staff’s direction regarding bonds and debt, many council members asked if the people paying off the bonds/debt would benefit from the infrastructure, which they were assured it would.
Debt takes between 20 to 30 years to pay off, while water treatment plants are supposed to last between 50 to 75 years, according to a city team member. Water lines are supposed to last between 20 to 50 years.
Council member Lisa Feret said that while she supports this work, she also wants to ensure that water does not become inaccessible to average residents.
“I think it’s important that we don’t make water unaffordable at that basic level, but I see a lot of waste and a lot of room for improvement in terms of water conservation that we could leverage some of that tier two or tier three cost,” Ferret said.
Mayor Lauren Simpson, Council member Randy Moorman and Council member Shawna Ambrose also approved the city team’s direction. Council members Bob Fifer and John Marriott were both absent from the workshop.