Agenda Date: 03/10/2026
Subject:
Title
Utility Rate Study Discussion
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Ryan Germeroth, Deputy Director of Public Works & Utilities |
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Presentations: |
Brent Soderlin, Director of Public Works & Utilities |
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Ryan Germeroth, Deputy Director of Public Works & Utilities |
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Todd Cristiano, Vice President Raftelis |
PURPOSE:
The purpose of this item is to provide council with an overview of the goals and objectives of the utility rates study that was kicked off late last year. The presentation will cover the process by which the study will be complete which will include a review of the current billing process. Public engagement and the timeline for the review and future rate approval will also be discussed.
LONG-TERM OUTCOME(S) SERVED:
Sustainable Community with Natural Beauty; Safe Community; High Quality Governance
DISCUSSION:
Littleton is planning for the future with a comprehensive study to update sewer and stormwater rates. These updates are essential to funding critical repairs and maintaining the infrastructure that protects Littleton homes and businesses, public health, and the South Platte River. While our 129 miles of sanitary sewer, 53 miles of storm drains, and 30 miles of drainage ways operate 24/7, many parts of the systems are aging. Proactive upgrades will prevent service disruptions and public safety concerns providing resilience through fiscal responsibility.
Sewer and stormwater bills directly fund essential infrastructure improvements and proactive maintenance. Over the next 10 years, the city plans to repair or replace 24 miles of sanitary sewer, work with partners to modernize the South Platte Renew wastewater treatment facility to meet federal environmental requirements and replace 15 miles of storm drains. By addressing these needs now, Littleton avoids the significantly higher costs and public safety risks associated with emergency repairs like those on Jackass Hill Road or Broadway and Lee Gulch. It also assures the city charges a fair and consistent rate to the nine water and sanitation districts that connect into the sanitary sewer system for treatment only.
To ensure fairness and accuracy, the city partnered with an independent consulting firm, Raftelis, to conduct a comprehensive rate study. The study will align future bills with the actual cost of service, including upgrades to critical infrastructure and regular maintenance, and ensure the city can continue to provide reliable service. Below is a summary of what the rate study will evaluate:
• 10-year financial cash flow: the cost to operate and maintain the stormwater and sanitary sewer systems, and whether the bill you pay appropriately aligns with those costs.
• Current and future capital improvement projects and maintenance needs: Major infrastructure projects are costly and need to be planned appropriately. This step helps to create a roadmap toward those large projects.
• Recommendations for future sanitary and stormwater project funding: The city uses the revenue from bills, loans, and grants to fund infrastructure projects. This step evaluates how we use these funding mechanisms to make the upgrades necessary to provide reliable service.
• What the City of Littleton should charge for service: This helps us ensure that revenue collected from stormwater and sewer bills closely aligns with the costs of providing service, including maintaining reliable systems.
The rate study kicked off late in 2025 and the financial planning is currently underway, so there are no details on rate changes to share yet. Since the last rate study in 2020, the rates for both sewer and stormwater have increased approximately 5 percent per year for the past five years. Even with these increases, Littleton’s current rates are one of the lowest in the Denver metro area with residents in Englewood, Aurora, Denver, Parker, Roxborough, Sterling Ranch and others paying more for sewer and stormwater service than customers in Littleton.
Public outreach and communication will be a part of the project over the next several months as well. The current plan is to hold at least two public meetings and at least one meeting with the connector districts. These meetings will inform attendees of the purpose and need of the rate study and, once determined, communicate the new rate structure and any proposed changes to the frequency of billing. The feedback gathered from these meetings will be shared with council sometime during the summer of 2026 in advance of the 2027 budget being finalized.
BACKGROUND:
To continue delivering the high-quality sewer and stormwater services Littleton customers expect and deserve, the city must periodically adjust utility rates to recover the costs of operating, maintaining, and providing these services. The city is reviewing its stormwater and sewer rates to ensure that future revenues are sufficient to operate and maintain each utility and to support the reliability and resilience of our critical infrastructure in the future.
Prior Actions or Discussions
Council approves the utility rates for stormwater and sanitary sewer each year as a part of the annual budget process. The last rate study was completed in 2020 with presentations to council occurring at that time.
FISCAL IMPACTS:
The fiscal impact of this study is yet to be determined and will be presented at a future date with council which is currently set for May 12, 2026.
STAFF RECOMMENDATION:
N/A
ALTERNATIVES:
N/A