Municipal Utility Rate Information

2025 utility rates

A planned 5% water and wastewater rate adjustment approved by the Board of Trustees went into effect in January 2025 in alignment with a comprehensive utility rate study completed in 2022. A typical single-family home will see a total monthly increase of approximately $4.61 during non-irrigation months.

The water and sewer rate study completed in 2022 aligned the values that matter to Wellington with the financial reality of the utility. Changes were made with input from community volunteers on the Resident Rate Roundtable to prioritize the lowest possible cost for essential water use.

A 5% annual rate increase was planned into the utility financial model for several years following the 2022 rate study. Small annual increases are typical for a responsible utility to avoid large unpredictable increases. The Town of Wellington had not raised utility rates for five years prior to 2020 and began operating at a loss. The goal moving forward is to keep up with the rising cost of operations in a planned, predictable fashion.

2025 Utility Rate Study and Rate Advisory Group

In March 2025, the Board of Trustees approved a contract with Raftelis to conduct a comprehensive utility rate and fee study.

The 2025 study includes updates to the existing water and wastewater financial models, development of a new stormwater financial model, review of high-strength wastewater surcharges, and recalibration of capital investment fees in light of recent capital investments. Study outcomes will include updated rates and fees designed to ensure long-term financial sustainability, fairness, and transparency.

The study builds upon a utility rate and fee study completed in 2022 and includes community engagement through a stakeholder group called the Rate Advisory Group (RAG). A Board of Trustees Work Session on May 6, 2025 (packet, recording) served as an introduction of the RAG as well as a kickoff for the rate study with both the Board of Trustees and RAG members.

The RAG is composed of community volunteers representing residential, business, and civic perspectives. The group is set to meet 5 times between May and October 2025:

Meeting 1: May 28, 2025
Meeting 2: June 24, 2025
Meeting 3: July 23, 2025
Meeting 4: August 19, 2025
Meeting 5: October 1, 2025

The RAG’s role is to learn about the rate and fee setting process, provide feedback on pricing objectives and customer impacts, review rate structure modifications, and ultimately recommend utility rate options for the Board's consideration.

The tabs below provide access to the information and materials RAG members will review to arrive at their recommendations, including slide decks of material used during the RAG meetings as well as reference materials. There is also information about the 2022 rate study process.

Questions regarding the 2025 Rate Study and the Rate Advisory Group can be submitted using this form.

History

In each of the past three years, The Wellington Board of Trustees (BOT) has voted to make changes to the water rate structure for Wellington Utility customers. Those changes were made based on the results of a 2022 rate and fee study that recommended a rate tier structure change and annual 5% rate increases for the subsequent five years. A recording of the presentation to the Board of Trustees regarding that study can be found here: https://youtu.be/rVa1y2d4joU?si=71npbIf1RfTwTvE7. The packet from that meeting can be found here: https://wellingtoncolorado.gov/ArchiveCenter/ViewFile/Item/563.

On November 8, 2022, the BOT approved the recommended rate tier structure changes that took effect Jan. 1, 2023. The packet from that meeting can be found here: https://wellingtoncolorado.gov/Archive.aspx?ADID=582. The minutes from that meeting can be found here: https://wellingtoncolorado.gov/Archive.aspx?ADID=608.

On November 28, 2023, the BOT approved a subsequent 5% rate increase, this one taking effect Jan. 1, 2024. A recording of that meeting can be found here: https://youtu.be/dNF5aiA_eII?si=EYto7PGqsefoo7g8. The packet from that meeting can be found here: https://wellingtoncolorado.gov/Archive.aspx?ADID=837. The minutes from that meeting can be found here: https://wellingtoncolorado.gov/Archive.aspx?ADID=850.

On October 22, 2024, the BOT heard a presentation about proposed rates for 2025. A recording of that meeting can be found here: https://youtu.be/GZC2HeSoAbk?si=oCErEsz3xBQxPaUN. The packet from that meeting is available here: https://wellingtoncolorado.gov/Archive.aspx?ADID=1034. The Minutes from that meeting can be found here: https://wellingtoncolorado.gov/Archive.aspx?ADID=1049.

On November 12, 2024, the BOT approved a 5% rate increase taking effect Jan. 1, 2025. A recording of that meeting is available here: https://youtu.be/JiGEmn2GckM?si=bEzXNFjedVIBVfrW. The packet from that meeting can be found here: https://wellingtoncolorado.gov/Archive.aspx?ADID=1046. The minutes from that meeting are available here: https://wellingtoncolorado.gov/Archive.aspx?ADID=1067.

Residential Water Rates	Jan. 2025	Jan. 2024	Jan. 2023	2022
Base Rate (0.75 Inch tap)	$54.81	$52.20	$49.71	$66.00
Tier 1 up to 3,000 gallons	$0.00	$0.00	$0.00	$4.56 (up to 15,000 gallons)
Tier 2 3,001-7,000 gallons	$12.90	$12.29	$11.70	$5.70 (15,001- 30,000 gallons)
Tier 3 7,001-20,000 gallons	$16.76	$15.96	$15.20	$7.72 (30,001+ gallons)
Tier 4 more than 20,001 gallons	$23.86	$22.72	$21.64	N/A

Residential Wastewater	2025	2024	2023	2022
Base Rate (Service Line Fee)	$15.38	$14.65	$13.95	$31.00 (included first 3,000 gallons)
Usage Fee	$8.84	$8.42	$8.02	$10.00

Rate changes were needed for multiple reasons, mainly to keep up with the ever-increasing cost of water. Additionally, in the face of the rapid growth our Town has experienced in recent years, Wellington Utility officials are tasked with ensuring there is enough capacity to provide drinking water and water reclamation services to all residents and businesses.

To provide that capacity, the Town in 2022 invested in building new water and wastewater treatment facilities. The new Water Treatment Plant came online in July 2024, and the Wastewater Reclamation Facility came online in October 2024.

The completion of the expansion projects doubled Wellington’s capacity to provide drinking water and water reclamation services.

Impact of lawn irrigation

Wellington Utility residential customers who use potable water to irrigate their lawns should expect to see a difference in their water bills.

There are many variables involved with lawn irrigation — the size of the lawn, the type of sprinkler heads and the number of sprinkler heads, to name just a few — making it difficult to accurately predict the impact of irrigation on customer water bills. However, it is entirely possible for a customer to use thousands or tens of thousands more gallons of water per month while irrigating their lawn, meaning they could jump from Tier 1 (the base rate) all the way to Tier 3 or Tier 4 during those months.

Customer Assistance Programs

Irrigation System Evaluations

Residential, Commercial, and HOA customers in Wellington are eligible for a free irrigation evaluation from professional technicians with Resource Central. Their Slow the Flow program aims to help residents reduce water use by identifying any leaks or other issues present in a sprinkler system, optimizing its efficiency. The audit also comes with a customized watering schedule. Review the program and sign up at resourcecentral.org/sprinklers. Evaluations are on a first come, first served basis.

For more tips on saving water, see our Water Efficiency Program.

Hardship Utility Grant

The Wellington Board of Trustees established the Hardship Utility Grant (HUG) to assist Wellington residents with their household utility bill. The definition of hardship as it applies to this grant was intentionally left vague to include as many people experiencing a difficult time as possible.

For the HUG application and information about other payment assistance, visit WellingtonColorado.gov/496/Payment-Assistance. Hard copies of the application may also be picked up at the Municipal Services Building.

Wellington Utilities system background

The Town of Wellington maintains enterprise funds for water, wastewater and drainage. These operate as a business — expenditures must be paid by the revenues generated, per the amendment to the State Constitution (the "Amendment") as codified in Article X, Section 20.

The Amendment states that qualification as an Enterprise will be determined annually and that "enterprises" may be disqualified as such by receiving 10% or more of their revenues for any year rather than generating those funds.

By doing this, the BOT acknowledges the impact of escalating utility rates on our residents by deciding to provide the maximum allowable support to the Water and Sewer Enterprise fund in accordance with State Law.

Rates and fees are determined annually and approved by the BOT. A comprehensive utility rate study completed in 2022 and citizen advisory committee recommended the current rate structure.

Additionally, the Town of Wellington locally manages a water treatment plant, wastewater reclamation plant and utility billing operations, including one utility billing clerk and Public Work Department technicians that collect meter readings monthly:

Customer records are kept on secure internal systems.
There are more than 4,500 active Wellington utility customers.
Xpress Bill Pay is only a statement delivery system and payment processor.

Factors in determining utility rates

Utility rates assessed for the three enterprise funds are comprised of several different factors:

There are three types of customers: residential (single family dwelling, multifamily dwelling), commercial and irrigation taps.
Water billing is a combination of a base rate (an equal amount for all customers of the same type) and volume rate by usage tier (the cost of the water provided) based on the size of the tap at the residence or business. Residential customers receive the first three thousand gallons of water included in the residential service base rate.
Wastewater billing is a combination of a base rate and a volume rate.
- Residential volume is an average of monthly water usage during winter months — from January, February, and March, when irrigation is not taking place and usage is at its lowest point historically — and updates annually on April statements with a due date in May.
- Commercial volume is calculated monthly with actual monthly water usage reduced by 15% to account for water use not returned as wastewater.

There are two rates assessed for drainage: Town of Wellington and Boxelder Basin Regional Stormwater Authority. The Town does not retain amounts assessed by the authority.

Meter Readings

Meter readings are collected monthly by Town employees to determine customer usage for billing. Meters are typically read between 20^th and 25^th of the month, and no later than the last day of the month.

A statement billing cycle, like calendar months, varies by number of days (28 - 31 days) and number of weeks (4 - 5 weeks). Meter estimates are only used when meter access is limited because of extenuating circumstances like weather or construction.

Utility statement cycle

20^th to 25^th of the month: meter read typically takes place for all utility customers.
Last day of the month: current month’s statements generated (delivery preference – US mail or email – can be updated on Xpress Bill Pay or by contacting the Town).
20^th of the month: last day to request payment arrangements or to apply for a Hardship Utility Grant (WellingtonColorado.gov/496/Payment-Assistance) for current month’s statement.
25^th of the month: due date for current month’s statement.
26^th of the month: late fee ($5) assessed for failure to pay or make payment arrangements by the 20^th of the month for current month’ statement.

Delinquency and service termination timeline

15^th of the second month following statement generation: delinquency and service termination (shut-off) notices are generated and sent via USPS for failure to pay previous month’s statement due on the 25th of the prior month. $10 fee assessed.
26^th of the second month following statement generation: service termination date for failure to pay or make payment arrangements for previous month’s statement due on the 25th of the prior month. $75 fee assessed.

The Town of Wellington fee schedule, adopted by the Board of Trustees, can be found online at WellingtonColorado.gov/158/Finance. With questions, please email utilities@wellingtoncolorado.gov.