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2026 Budget and Rates FAQs

 

Why are water rates increasing? 

Our costs for operations, water acquisition and capital improvements have outpaced our rate revenue. Rates are our primary funding source because we do not collect a mill levy or property taxes, and our tap fees are minimal because we are a master planned community that is nearly at build out. Adjusting rates ensures we can maintain the safe, reliable water system our community depends on.

How much will my bill increase? 

The rate changes will increase an average bill by $8.75 per month for our typical single-family customers, as long as they stay within their water budget. The water budget is calculated to provide enough water to keep your grass healthy, so we recommend doing your best to stay within it.

When will I see the increase on my bill? 

New water rates will be reflected in your first full billing cycle of 2026.

There are a lot of fees on my water bill. What are they for? 

What’s on your bill is more than just the cost of your water usage. Your water bill is comprised of six charges. 

  • Water charges 
  • Water service availability fee 
  • Wastewater charges 
  • Infrastructure improvement fee 
  • Two fees appear on your bill that are passed through to the Highlands Ranch Metro District. They include a Stormwater fee and Streetlight fee
How often do rates change? 

Water rates are reviewed and adjusted once each year during the annual budget process in the fall. According to state law, our proposed budget must be made available Oct. 15 annually.

Can you cut costs instead of raising rates? 

We continuously work to control costs through operational efficiencies and energy savings. However, ongoing maintenance, important capital equipment upgrades, and regulatory compliance cannot be delayed without risking service reliability.

Why can't you use other funding sources besides rates? 

Highlands Ranch Water is funded primarily through our rates. The district does not collect property taxes, and we can no longer rely on tap fees as a reliable source of revenue because our community is nearly built out.

While grants and other funding sources help, we rely primarily on customer rates to fund essential operations and infrastructure. Rates are the most reliable way to ensure ongoing, safe service.

Our other sources of funding, which account for 3% of our revenue, include intergovernmental agreements, investment income, other operating revenue, and non-operating revenues.

What will the rate increases fund? 

Every dollar you pay is reinvested into your water system. Rates support:

  • Day-to-day operations and maintenance
  • Securing and acquiring water supplies
  • Infrastructure upgrades (pipes, pumps, treatment plants)
  • Meeting new water quality standards, including PFAS treatment
  • Paying debt for large projects once issued
How does our water rate compare to other utilities? 

We continue to offer competitive rates below the regional average. The estimated annual bill for a typical single-family residence in 2026 will be $1,386 Other’s 2025 average annual bills are:

  • Littleton: $1,002
  • Stonegate Village: $1,434
  • Parker Water: $1,487
  • Castle Rock Water: $1,440
  • Castle Pines Village: $2,467
  • Castle Pines North: $1,703
  • Roxborough: $2,297
  • Sterling Ranch: $2,685
How will this benefit me? 

The rate adjustment funds essential projects that:

  • Improve system reliability to help prevent service interruptions
  • Expand treatment capacity at the water treatment plant to meet peak demand and reduce our reliance on nonrenewable groundwater
  • Achieve new water quality regulations
  • Replace or upgrade aging infrastructure
  • Ensure safe, clean, reliable water for the next 40 years and beyond
Can I control how much I pay? 

The fees on your water bill are a combination of fixed fees and usage fees. You can directly manage your water usage charges. Using water wisely—especially outdoors—helps reduce your bill and supports conservation in our community.

How can I lower my bill? 

No one knows your water usage like you do. Inventory your water habits around the home and identify ways you can save – both indoor and outdoor. Leaks are frequently a culprit of a higher-than normal water bill. Fix leaks promptly. A running toilet can waste hundreds of gallons of water a day. Irrigation leaks are also a common source of water waste which can lead to higher bills. For more ideas, visit the conservation page of our website.

How do I know money is being spent wisely? 

Transparency is one of our commitments. We provide updates on major projects, financial reports, and budget decisions through board meetings, newsletters, and our website. Every dollar collected works toward safe, reliable water service for our community. The public is invited to attend board meetings either in-person or virtually through the Zoom platform. If a customer has questions, they are encouraged to contact us at contactus@hrwater.org.

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