Politics
Pueblo City Council Approves Water Rate Adjustment Ordinance, With First Bill Changes Due in 2027
Pueblo households can expect adjustments to their monthly water bills beginning in the first quarter of 2027 under the new ordinance approved at the July 7 city council meeting.
How we reported this
The Pueblo City Council voted 5-2 on July 7 to approve the Water Rate Adjustment Ordinance, which sets a schedule for incremental increases in utility rates over the next three years. This affects all 48,000 residential and commercial water customers served by the Pueblo Water Department within city limits.
The ordinance responds to a documented shortfall in the water enterprise fund, which the 2026 budget report identified at $4.2 million. City staff presented the measure after reviewing deferred maintenance on aging distribution lines, with the council directing funds toward pipe replacements and treatment plant upgrades rather than immediate lump-sum borrowing.
Household Cost Schedule
Under the ordinance, a typical single-family home using 6,000 gallons per month will see an added $3.80 on the January 2027 bill, followed by $2.90 in January 2028 and $2.40 in January 2029. Multi-unit buildings and businesses face proportional adjustments based on meter size, with the first notices mailed in December 2026 so property managers can update tenant ledgers before the new year.
Residents who qualify for the existing low-income utility assistance program will receive an automatic 50 percent offset on the new increments, according to eligibility rules already on file with the city clerk. The ordinance also requires the water department to publish quarterly usage reports so customers can track consumption patterns against the phased rates.
Next Steps and Rollout
City engineers will begin bidding on the first round of distribution line projects in August 2026, with construction expected to start in the Belmont and Bessemer neighborhoods by spring 2027. The government says the policy will produce completed replacements covering 12 miles of pipe by the end of 2029, funded entirely through the rate schedule without additional general-fund transfers.
Public works staff will hold two open-house sessions in October 2026 at the Pueblo Convention Center to explain meter-reading changes and answer questions about conservation credits. The ordinance takes effect 30 days after publication in the city register, locking the timeline for the initial rate posting on January 1, 2027.