The Wellington Board of Trustees recognizes the significant financial impact that the recent utility rate changes have had on our residents and businesses. We understand that these changes have come at a challenging time, and we want to acknowledge the strain this has placed on household budgets and local enterprises.
Over the past two years, we’ve had to make difficult but necessary adjustments to our water rate structure. A comprehensive study in 2022 recommended an updated rate and tier structure with annual 5% rate increases from 2023 to 2028 to ensure the sustainability of our utility services.
From 1992 to 2020, the Town did not consistently implement gradual water rate increases to keep up with the rising costs of water, infrastructure needs, and the demands of our growing community. This lack of foresight has contributed to the financial challenges we now face.
A significant portion of the current costs are also tied to a 1983 contract with the North Poudre Irrigation Company (NPIC) through which the Town receives most of its raw water supplies. The contract has become increasingly expensive due to rising regional water costs and increased interest rates, with the Town bearing a 150% cost increase since 2020 and a 640% increase since 2013. The Town is actively negotiating a new contract with NPIC and identifying other water sources to decrease this cost burden to our customers.
We deeply empathize with those who are feeling the burden of these rate increases. Please know that the Board is fully committed to providing the maximum support allowed under State Law to the Water and Sewer Enterprise Fund. Our goal is to ensure that these essential services remain self-sustaining, as required by Article X, Section 20 of the State Constitution, while also exploring every possible avenue to ease the financial strain on our community.
We encourage residents facing financial hardship to apply for assistance through the Hardship Utility Grant (HUG) program, which offers up to $300 per year to help with household water bills. Detailed information on the HUG program and other financial relief options can be found at WellingtonColorado.gov/155/Water-Sewer.
The Wellington Board of Trustees remains dedicated to finding solutions that will alleviate the financial burden on our community while continuing to provide safe and reliable water and wastewater services. We truly appreciate your understanding and patience as we navigate these challenges together.