The proposed budget includes rate increases necessary to help cover rising operating costs and continued investment in the infrastructure that provides safe, reliable water and wastewater services to customers.

Operating expenses next year are expected to increase by approximately $9.7 million compared to projected 2026 expenditures. These increases are driven by higher costs to purchase water, maintain and operate our treatment facilities, replace aging water meters, and meet debt obligations.

The district also plans to invest approximately $41.9 million in infrastructure improvements in 2027. Major projects include continued upgrades to our water treatment plant, improvements to water storage and delivery systems, and replacement of aging infrastructure.

The rate changes will increase an average bill by $7.75 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.

New water rates will be reflected in your first full billing cycle of 2027.

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

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.

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.

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.

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

We continue to offer competitive rates below the regional average. The estimated annual bill for a typical single-family residence in 2026 will be $1,479 Other’s 2026 average annual bills are:

• Littleton: $1,197
• Stonegate Village: $1,525
• Parker Water: $1,519
• Castle Rock Water: $1,506
• Castle Pines Village: $2,587
• Castle Pines North: $1,795
• Roxborough: $2,356
• Sterling Ranch: $2,955

The rate comparison is based on a standardized residential customer using 100,000 gallons of water annually with the same monthly usage profile and applicable charges across all utilities.

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

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.

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.

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.