Politics
Pueblo City Council Passes 2026 Utility Fee Adjustment Ordinance to Address Household Budget Pressures
The ordinance limits increases in water and sewer rates for Pueblo residents while expanding eligibility for existing bill assistance programs starting in the new fiscal year.
How we reported this
The Pueblo City Council approved the 2026 Utility Fee Adjustment Ordinance on July 7, which caps annual rate increases for residential water and sewer services at 3 percent and directs an additional $1.2 million from the city's general fund to the existing Low-Income Utility Assistance Program. The changes take effect October 1 and apply to all single-family homes and multifamily units within city limits.
Pueblo residents have faced cumulative utility bill growth of 18 percent since 2022, according to the city's annual utility rate review published in the 2026 budget document. The ordinance responds to those figures by shifting a portion of infrastructure maintenance costs away from the residential rate base and onto commercial accounts for the coming year.
Direct Effects on Pueblo Household Expenses
Under the new structure, the average single-family home using 6,000 gallons of water monthly will see its combined water and sewer bill rise by $2.40 instead of the $7.10 previously projected. Households already enrolled in the assistance program will receive an extra $25 monthly credit, expanding the program's reach from 2,800 to an estimated 3,400 accounts. City records show that 14 percent of Pueblo households currently qualify under the income threshold of 200 percent of the federal poverty level.
The adjustment also freezes connection fees for new residential accounts through December 2027, a measure that city finance staff estimate will reduce upfront housing costs by an average of $180 for families moving into new construction or recently annexed neighborhoods such as the East Side and Bessemer.
Implementation Timeline and Verification Process
City staff will mail updated rate schedules to all residential accounts by September 15, and applications for the expanded assistance credits open August 1 through the Pueblo Housing Authority office on Victoria Avenue. The ordinance requires an annual public report to the council each March detailing actual collections and participation numbers.
Local budget analysts note that the $1.2 million allocation comes from unspent 2025 capital reserves rather than new taxes, with no impact on the city's bond rating or planned street and park projects listed in the current five-year capital plan.