Pueblo Utility Affordability Ordinance Caps Water and Sewer Rate Increases for 2026

The Pueblo City Council approved the Utility Affordability Ordinance on July 7, directing the city’s water and sewer enterprise to hold combined residential rate increases at no more than 3 percent for the 2026 billing year.

City budget documents show that water and sewer charges account for roughly 18 percent of typical monthly utility outlays for Pueblo households, a share that has grown since the last rate adjustment in 2023.

Effects on Pueblo Households

Under the ordinance, a single-family home using 5,000 gallons of water per month will see its combined water and sewer charge rise from $72.40 to $74.57, rather than the $79.60 that would have applied under the prior formula. Apartment residents on master-metered accounts receive a proportional credit applied directly to their monthly statements beginning in January 2026.

The change applies uniformly across all city residential accounts, including those in the East Side, Bessemer and Highland Park neighborhoods, where median household income sits below the statewide average according to the most recent American Community Survey figures released by the Census Bureau.

Local advocates note that the ordinance does not alter the tiered rate structure for high-volume users, so households exceeding 10,000 gallons monthly will still face steeper marginal charges.

Implementation Timeline

The city finance office will recalculate bills using the new cap beginning with the January 2026 cycle, with the first adjusted statements mailed in late December. The ordinance requires an annual review by the council’s budget committee each October to determine whether the 3 percent limit remains in effect for the following year.