A: Breckenridge’s Water Division within the Public Works Department provides you with safe, high-quality water services that are essential to your everyday life. The affordable drinking water we deliver to your home or business enables you to do things like bathe your children and prepare healthy meals, and also provides critical fire protection.

A: The Division is funded solely by the water rates customers pay. Your payment ensures our ability to deliver high-quality, reliable water in a manner that values our environment and community, and sustains the resources entrusted to our care. The water bill you pay is an investment in your future to ensure we can continue to provide you—and generations to come—with the same high-quality water service you receive today.  

We are committed to good governance, fiscal accountability, and transparency, with systems and policies in place to earn the trust of our customers. Your water rates also help us employ experts who put those values into action and maintain reliable service.

A: No. The Breckenridge Water Division is not a for-profit enterprise, so it cannot charge customers more than what it costs to provide the service. The Town’s water system is owned by our customers and governed by Town Council; we do not have shareholders or pay dividends. Governance by Town Council ensures that rates reflect the values of the community and serve the Breckenridge area fairly and equitably.

A: Water rates cover standard operations activities for the water system, but there’s more to it than that. Water infrastructure is extremely valuable and critical to the service we provide every day. Much like a car, it needs to be maintained to operate properly. Rates must also cover critical infrastructure investments like the Goose Pasture Tarn Dam Rehabilitation Project, which will maintain its safety and extend its service life. Finally, rates must cover the repayment of bonds taken out to raise money, along with a responsible level of cash reserves so we can respond quickly in a water service emergency.

A: Between now and 2032, we are investing about $69 million in critical maintenance and infrastructure replacement to modernize our drinking water system. This includes repairing the Goose Pasture Tarn Dam, storage tank repairs, transmission and distribution water main improvements, Gary Roberts Water Treatment Plant engineering and construction, and more.

A: Every year we update budgets that include planned operating and capital needs for the year, along with a multi-year capital improvement plan. Consistent with industry best practices, we periodically perform a detailed financial analysis, known as a water rates study, which examines rates and fees to ensure the utility is financially healthy enough to support daily operations, maintenance, and critical infrastructure investment. We recently performed a rates study, which was completed in early-2023.

A: Rate studies are conducted to ensure that a utility’s financial health is maintained and that the utility is setting a course toward meeting future financial obligations. The industry standard is to perform comprehensive rate studies every three to five years. 

Our current study included the following:

• Performing a financial analysis of the utility’s cash flow 
• Analyzing any outstanding debt and related requirements 
• Incorporating current and future capital improvement and maintenance needs 
• Identifying the cost of providing service for each customer type and group 
• Recommending updates to how the utility should charge for service – such as changes to the rate structure to align better with community values and priorities, including input from community stakeholders. 
• Recommending what the utility should charge for service – to help ensure that revenues collected from utility bills are closely aligned with the combined costs of providing water service, including maintaining a reliable, sustainable water system.

A: Town Council created a committee that included members of the Council and representatives from the community, including commercial and residential stakeholders, to provide policy guidance and feedback on the process. Town staff gathered historical data along with budget figures and planned capital investments. Raftelis, a consultant specializing in helping communities fairly and equitably price utility services, was hired to perform the study.  

A: The rates study committee sought to design a rates structure that: 

• Encouraged conservation and water efficiency to respect our place in the ecosystem and contribute to SustainableBreck’s water use reduction goals 
• Promoted affordability to ensure even our most economically vulnerable neighbors can afford basic water service  

A: Currently, residential water bills include three components. These include: 

Current Residential Bill Components Shown Bimonthly	In-Town	Out-of-Town
Base Charge (Includes 10,000 gallons each 2-month billing cycle)	$48.48	$72.71
Excess Use (Per 1,000 gallons over 10,000 used each 2-month billing period)	$7.39	$11.08
Water System Maintenance Fee (Each 2-month billing period)	$12.00	$12.00

A: The rate study committee used Breckenridge’s community values to help inform how rates might be set in the future, keeping affordability and conservation at the top of mind.

They found that small changes to how customers are charged for water could be made to send an economic signal to high water users to encourage water conservation.  

This is accomplished in two ways: 

• First, by increasing the number of tiers in the rate structure from one currently to two, and  
• By reducing the volume of water included in the base charge from 5,000 gallons each month to 3,000 gallons. 

A: Town Council has adopted the practice of billing customers every month instead of every two months. We expect this will make the billing structure easier to explain and will therefore increase customer understanding. It will also help customers track their water use more closely and more quickly to see how any changes to their water use practices are impacting their bill. Finally, research shows that consumers prefer monthly billing, as it helps families budget more logically and consistently.

A: The Town of Breckenridge began sending monthly water bills in July 2023. The change to monthly billing from bimonthly billing came as a recommendation from the Water Task Force and was recommended by Town Council in February 2023. This change will help customers understand their usage, detect leaks, encourage conservation, and analyze irrigation usage.

A: The previous water allowance was 10,000 gallons per SFE every two months. For the period between July 1, 2023 through December 31, 2023, the water allowance is 5,000 gallons per SFE per month. The monthly bill will be half of what the old bimonthly bill was if you are using the same amount of water. Starting in January 2024, the water division will move to a tiered water structure with a base allowance of 3,000 gallons per SFE per month.

2024 Residential Bill Components	In-Town	Out-of-Town
Base Charge per SFE (Includes 3,000 gallons each month)	$26.66	$39.99
Tier 1 Volumetric – 3,001-10,000 gallons (Per 1,000 gallons over 6,000 used each 2-month billing period)	$8.13	$12.20
Tier 1I Volumetric – >10,000 gallons (Per 1,000 gallons over 10,000 used each month)	$12.19	$18.28
Water System Maintenance Fee (Each month)	$6.30	$6.30

A: Currently, commercial water users are charged for water use based on the size of their meter. Included in that charge is an allotment of water that increases with the meter size. Usage above the allotment is charged at $7.39 per thousand gallons for in-Town commercial users, while out-of-Town commercial users pay $11.08 per thousand gallons when use exceeds the allotment. 

There are unintended consequences of this approach, so the Town Council has decided to simplify the rate structure for commercial customers by charging based solely on usage. Every gallon used will be billed, which also encourages conservation. 

A: Commercial customers will no longer be charged a base fee that varied depending on the size of their water meter. Instead, they will be charged a single rate for each thousand gallons. In-Town customers will pay $8.13 per thousand gallons, while out-of-Town customers will be charged $12.19. 

A: If you currently pay your water bill by ACH, it will adjust automatically to the new billing frequency and amount. If you happen to notice any irregularities, please contact water billing at waterbill@townofbreckenridge.com or call 970-453-3190.  

A: With the change from bimonthly to monthly billing, customers who receive a paper bill will see the charge reduced from $15 to $10. If you are interested in making the switch to electronic billing, please email us at waterbill@townofbreckenridge.com or call 970-453-3190. E-bills are secure, reduce the chance of human error or fraud, and won’t get lost in the mail.

A: To learn more about what the Town of Breckenridge is doing, visit www.townofbreckenridge.com or call 970-547-3190.