Utilities staff recommends 5% water increase; wastewater suggested at 5–8% to shore up $207M capital needs

Kevin Niles, the district's director of utilities, told the Pueblo West Metropolitan District board that staff is recommending a 5% water rate adjustment and a wastewater increase in the 58% range to preserve reserves and support capital work. "Staff's recommendation direction is 5% adjustment for water and wastewater adjustment across the board," Niles stated during his presentation.

Niles laid out the district's three modeled pathways: 0% (hold rates), 3% (match operating inflation) and 5% (stronger foundation). He said the utilities 15-year capital improvement program totals roughly $206207 million, with about $130 million concentrated in the first five years. At a standard residential usage level (5,000 gallons), the current combined bill is approximately $106.40 per month; under a 5% adjustment the combined bill would rise by about $5.32 per month to roughly $111.72.

Staff noted trade-offs for each pathway. The 0% scenario accelerates reserve depletion and risks needing larger future adjustments; the 3% scenario largely addresses operating inflation but leaves capital shortfalls; and the 5% scenario strengthens debt-coverage metrics and provides more capacity for near-term projects, though it does not fully fund the full capital program. Board members asked staff to model alternative wastewater percentages (68%) and to provide debt-service comparisons and implementation options for public review.