FAQs • Wellington, CO • CivicEngage

Are we raising rates paid by new development?

Yes. The Town evaluated rates for water and wastewater fees and charges (water tap and sewer tap) ultimately resulting in an increase.

The Town commissioned a water utility rate study that was completed and presented in 2020. The water rate study revealed that user utility base rates needed to increase to cover normal operating costs, chemical and treatment costs, and improvements to aging and outdated equipment. User fees have been increased to account for these shortfalls.
The new water treatment plant expansion project that will allow for additional treatment capacity to accommodate current and future growth results in costs that are recovered through the collection of impact fees paid by new development. The Board of Trustees approved an increase of the water tap fee from $5,500 to $7,500 and then to the current rate $7,750 for a typical 3/4-inch water tap (3/4-inch tap serves most residential homes and many small businesses). Larger tap sizes are also increase proportionately.
The wastewater treatment plant is also currently under design for an upgrade to existing process equipment and expansion to accommodate current and future growth. The costs of the upgrade and expansion have been evaluated to proposed various funding scenarios that balance the costs paid by existing users through user rates and the impact fees paid at the time of building permit for new development. Impact fees for a typical 4-inch sewer tap (serves most residential uses and many small business uses) is increased from $7,500 to $9,700. Larger sewer tap sizes increased proportionately based on specific uses.

Residential water and sewer taps currently make up the largest portion of new development impact fees, along with a modest number of new business impact fees. Although impact fees are collected just one time at the time a building permit is issued, the fees are typically passed on to the homebuyer or business and often rolled into the home mortgage or business loan. Homeowners and businesses continue to pay for the one-time cost in their monthly mortgage or loan payments. The homeowner/business also begins paying monthly usage rates beginning at the time construction is complete. Balancing the one-time impact fee costs is important to ensure the cost burden to homebuyers and small businesses continues to be manageable.

New development projects have significant costs to provide the public infrastructure that serves the development. The developer pays for the installation of water lines, sewer lines, streets, parks and other improvements at the time of construction. The developer/builder then also pays the costs of the impact fees at the time a permit is issued. Continuing to increase impact fees while at the same time the Town is limiting the number of residential permits to stay within treatment capacities could reach a point where developers/builders are unwilling to continue to build in Wellington. If this cost point is reached that new development is no longer willing to pay the fees, the result could be a slowdown or a stop to new development, shifting the cost of paying for improvements onto existing residents.

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Water Utility Frequently Asked Questions

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1. Why is there a tier structure and what does it cost?

The tier structure is designed to give users more control of their bill. The less water you use, the less you pay per 1,000 gallons. Not only does this allow you to take your water bill into your own hands, the Town is better positioned to meet the current and growing demand.

Current residential tier structure:

Base Rate $66.00
First 15,000 Gallons $4.56 per 1,000
Over 15,000 Gallons $5.70 per 1,000
Over 30,000 Gallons $7.72 per 1,000

Single family residential tier structure as of January 2023:

Tier 1 (0-3,000 gallons): $0.00
Tier 2 (3,001-7,000 gallons): $11.70
Tier 3 (7,001-20,000 gallons): $15.20
Tier 4 (more than 20,000 gallons): $21.64

Multi family tier structure as of January 2023:

Tier 1 (0-3,000 gallons): $0.00
Tier 2 (3,001-5,000 gallons): $7.08
Tier 3 (5,001-14,000 gallons): $9.21
Tier 4 (more than 14,000 gallons): $13.11

Commercial tier structure as of January 2023:

Tier 1 (0-25,000 gallons): $11.72
Tier 2 (25,001-120,000 gallons): $14.64
Tier 3 (more than 120,00 gallons): $17.57

2. Is the Town doing anything to slow down growth?

Yes, the number of building permits have been limited.

Town staff are actively working with developers and builders to manage growth in a responsible manner. The existing treatment capacity limitations at the water treatment plant and wastewater treatment plant create limitations on the number of new residential permits that can be issued over the next few years until the plant expansion projects are complete.
It is estimated that the current treatment facilities would allow on average approximately 100 building permits per year over the next 3 years (approximately 3% growth rate). One year may have slightly more than 100 and another year may have slightly less than 100. Town staff continues to monitor the capacities of the treatment facilities and will update the number of permits allowed based on available capacity.
Managing growth during this period until the treatment facilities are complete is critical to community’s ability to provide water and wastewater services for residents and businesses while also allowing a moderate amount of growth to allow some revenues from new development. Revenues and impact fees from new development permits (application fees, development review fees, building use tax, and impact fees are all collected at the time of building permit) helps shift some of the cost burden from existing residents.

3. Does Wellington’s water meet Water Quality Standards?: Yes, according to the 2022 Drinking Water Quality Report which is based on water quality monitoring data collected in 2021, the Town’s water meets all state and federal drinking water health standards, which are the primary standards for treating and monitoring water. State mandated water quality compliance testing is completed annually by a State of Colorado certified laboratory. Results show Wellington water is compliant in all categories. You can find more information on the Colorado Department of Public Health & Environment Consumer Confidence Reports, under “WELLINGTON TOWN OF – CO0135838.”

4. What is the difference between Water and Wastewater?

Drinking-water systems collect source water from rivers, lakes, groundwater wells, remove pollutants, and distribute safe drinking water to residents (potable).

Water Reclamation systems (wastewater) collect used water and sewage, remove contaminants, and discharge clean water back into the nation's rivers and lakes for other use.

5. How do Wellington’s utility rates compare to other communities?

The Division of Local Government (DLG) conducts an annual survey of local utility providers and gathers information about water and sewer rates. In 2020, drinking water rates, (for 10,000 gallons of use), showed a 24.9% median increase for municipalities. Additionally, municipalities wastewater rates showed a 3.57% median increase.

According to the 2020 rate survey, the average monthly residential water bill for municipal customer in Colorado was $67.93 (based on 10,000 gallons of use). Comparatively, Wellington water customer paid $111.60 (based on 10,000 gallons of use).

Municipal sewer customers in Colorado paid an average monthly bill of $38.04 and Wellington residential customers paid $27.13 on average monthly.

6. I need help paying my water bill, who should I contact?: If you need assistance paying your bill, contact one of the following agencies for assistance:
If you have experienced a hardship:
Click here to download the Hardship Utility Grant (HUG) application. Applications are also available in person at Wellington Town Hall. The application must be submitted in person to Wellington Town Hall along with documentation to verify the hardship.

Haga clic aquí para descargar la aplicación Hardship Utility Grant (HUG). Las solicitudes también están disponibles en persona en Wellington Town Hall. La solicitud debe enviarse en persona al Ayuntamiento de Wellington junto con la documentación para verificar las dificultades.

If you have been financially impacted by COVID-19:
Call Neighbor to Neighbor at 970-829-0296 or visit larimer.org/erp to learn more!

Other opportunities for financial assistance
Discover Goodwill
1-888-775-5327
Catholic Charities Larimer County
970-484-5010
460 Linden Center Drive, Fort Collins
Monday - Thursday, 8 a.m. - 4 p.m.
La Familia/The Family Center
970-221-1615
309 Hickory St. #5, Fort Collins
Monday - Friday, 8 a.m. -12 p.m. and 1-5 p.m.
For assistance paying rent visit Neighbor to Neighbor by clicking here.
Neighbor to Neighbor ofrece servicios de tranducción en todas nuestras oficinas. Envie un correo electronicó a contact@n2n.org para más informacion o para hacer una cita.
Larimer County Human Services
https://www.larimer.org/humanservices

7. What is the timeline for the water rates decision?: The Board of Trustees adopted new water rate fees in November 2022. Water and Sewer rates will be assessed annually as a best practice to ensure all fees are in line with the cost of providing service.

8. Are we raising rates paid by new development?

Yes. The Town evaluated rates for water and wastewater fees and charges (water tap and sewer tap) ultimately resulting in an increase.

The Town commissioned a water utility rate study that was completed and presented in 2020. The water rate study revealed that user utility base rates needed to increase to cover normal operating costs, chemical and treatment costs, and improvements to aging and outdated equipment. User fees have been increased to account for these shortfalls.
The new water treatment plant expansion project that will allow for additional treatment capacity to accommodate current and future growth results in costs that are recovered through the collection of impact fees paid by new development. The Board of Trustees approved an increase of the water tap fee from $5,500 to $7,500 and then to the current rate $7,750 for a typical 3/4-inch water tap (3/4-inch tap serves most residential homes and many small businesses). Larger tap sizes are also increase proportionately.
The wastewater treatment plant is also currently under design for an upgrade to existing process equipment and expansion to accommodate current and future growth. The costs of the upgrade and expansion have been evaluated to proposed various funding scenarios that balance the costs paid by existing users through user rates and the impact fees paid at the time of building permit for new development. Impact fees for a typical 4-inch sewer tap (serves most residential uses and many small business uses) is increased from $7,500 to $9,700. Larger sewer tap sizes increased proportionately based on specific uses.

New development projects have significant costs to provide the public infrastructure that serves the development. The developer pays for the installation of water lines, sewer lines, streets, parks and other improvements at the time of construction. The developer/builder then also pays the costs of the impact fees at the time a permit is issued. Continuing to increase impact fees while at the same time the Town is limiting the number of residential permits to stay within treatment capacities could reach a point where developers/builders are unwilling to continue to build in Wellington. If this cost point is reached that new development is no longer willing to pay the fees, the result could be a slowdown or a stop to new development, shifting the cost of paying for improvements onto existing residents.

9. What water fees and rates are charged for new construction homes? How do new construction fees help pay for water infrastructure?: Before any water fees are paid to the Town, a developer is first responsible for providing the water infrastructure (underground pipes) that extend water services throughout the subdivision. The cost of installing the new infrastructure is paid by the developer initially, and developers will typically recover their cost of installation in the sale price of the lot or home. Each new residential dwelling unit that is permitted is required to pay a water tap fee, currently $7,750. This is the capital cost of connecting to the Town’s water treatment and distribution system. Tap fees are used by the Town to pay for water treatment plant expansions, upgrades and new equipment necessitated to accommodate the impacts of new growth. Each new dwelling is also required to bring raw water to the Town (raw water is a term used to describe untreated water resources, such as water shares, rights or wells that can be accessed by the Town for treatment and distribution to residents). This is typically accomplished by paying a fee in-lieu of water dedication (pay a fee instead of providing the actual water resources) and is paid at the time a building permit is issued. The raw water fee is established based upon the cost of acquiring new water rights, and is currently $19,285.50. The Town uses these fees to purchase water shares or rights, or to lease water shares or rights for treatment and distribution. Once the water tap fee and the raw water fee are satisfied, a building permit is issued and the home builder pays the same residential water utility rates as residents until such time as the property is sold and the new home-buyer takes responsibility for the water utility fees. The water utility fees are used to pay for the cost of treating water and maintaining the water treatment and distribution systems.

10. When was the last time rates were increased?: Water rates were increased in 2021. Prior to the most recent increase rates were minimally raised in 2016.

11. What is the Town doing with the bulk dispensing water machine?: You can find rate information and hours of operation by clicking here.

12. What other options will the town pursue to handle the water issues?: The Town of Wellington has a Municipal Water Efficiency Plan in place as of 2018 and the Town has had on-going Water Efficiency Activities since 2013. These activities include automatic meter reading installation and operations, a leak detection and repair program, weekly and time of day outdoor water restrictions, and several other plans. If you are interested in reading the full Water Efficiency Plan, please click here.

13. Have you considered incentives for xeriscaping current homes and restrictions on landscaping with new builds?: Conservation measures such as xeriscaping and other methods of reducing outdoor water demand are being evaluated by the Town. A combination of standard requirements for new construction, best practice guidelines, and incentives for converting existing water-intensive landscapes will be considered. Reducing outdoor water consumption will be integral to the Town’s future, and will need frequent evaluation to ensure regulations and programs are commensurate with available resources and remain beneficial to the Town and its residents.

14. Have you considered conducting a long-term plan that reflects our values and needs for growth and community life?: The Comprehensive Plan was adopted by the Planning Commission on August 2, 2021. Click here to view the adopted version of the plan.

15. Are there other options such as joining another water district or starting our own?: The Town Board and Staff have looked into other water options, unfortunately none are financially viable at this time.

16. When is the water plant being built?: The process has started and the goal of completion is 2024.

17. Where do we get our water from?: The Town’s raw water supply comes from North Poudre Reservoir No. 3 that is sourced from the North Fork and Poudre River groundwater from the Coal Creek aquifer. Raw water from North Poudre Reservoir No. 3 supplies the Town’s Conventional and Microfiltration facilities that are both located near the reservoir. Groundwater is pumped from three wells into the Town’s Nanofiltration and Reverse Osmosis (RO) facilities located near the Leeper Center.

18. Can we remove grass lawns to save water?: The Town of Wellington encourages conservation methods such as xeriscaping and this would benefit residents in less consumption per month which would lower bills per month. If you are interested in conservation methods for your lawn, we suggested you check out the Northern Water’s website here for Water Wise Landscapes.

19. Where can we find an explanation of why rates are being increased?: There are several presentations available on the “Utility Rate Update” page on our website. Please take advantage of the videos, board meetings, and powerpoints. If you have additional questions please contact Communications Specialist Mahalia Henschel at henschem@wellingtoncolorado.gov or call at (970) 342-8500.

20. Why aren’t developers charged more to develop in Wellington?: Rates increased for developers in 2020,2021 and 2022. The adopted fees are based on the actual costs to the Town to acquire new water sources needed to serve the new developments.

21. Why does my water occasionally have a bad taste or smell?: Aesthetic effects (such as taste, odor, or color) in Wellington’s drinking water are caused by frequent blue green algal blooms in the reservoir that provides our water. The decomposition of the algae creates chemical compounds that create a general earthiness in the water. According to the Colorado Department of Public Health & Environment, Wellington’s water meets all state and federal drinking water health standards. Taste and odor causing effects are difficult to remove from the water but are not a risk to health or safety. To help remove taste and odor compounds, the Town is currently working on expanding the Water Treatment Plant which incorporates newer technological improvements to help eliminate taste and odor concerns. The plant is schedule to be completed in 2024.