Fort Collins Behind on Water Main Replacement, Needs to Double Investment

Fort Collins is replacing its aging water distribution system at half the recommended rate, leading to costly emergency repairs like a recent water main break that topped $200,000 and contributing to what officials describe as an abnormally high number of failures this year.

The city currently replaces approximately 0.5% of its water infrastructure annually but needs to reach 1% to maintain a sustainable 100-year replacement cycle, according to city utilities staff who presented budget information to the Fort Collins City Council October 14.

"We're probably at a half a percent replacement and need to get closer to one," said Joe Wimmer, a utilities finance official, during the work session discussion on the city's 2026 utilities budget.

The lagging replacement rate has real-world consequences. A water main break on LeMay Avenue earlier this year caused more than $200,000 in operation and maintenance costs alone, not including collateral property damage or business disruption. The failed pipe was ductile iron installed in the 1980s that did not reach its expected 70 to 100-year lifespan.

Anecdotal Spike in Water Main Breaks

Councilmember Trish Overbeck raised concerns about what appeared to be an unusual number of water main breaks throughout 2025.

"Anecdotally it seems like there's been a lot of water breaks, water main breaks this year," Overbeck said during the budget presentation. "Have there been an abnormally high number?"

Wimmer confirmed the observation, pointing to the costly LeMay incident as an example of how aging infrastructure drives up unplanned emergency repair costs.

The city maintains a vast network of water distribution pipes, with some dating back to the late 19th century, according to Colorado water education resources. Fort Collins set a goal of replacing its entire system every 100 years, which requires the 1% annual replacement rate the city is not currently meeting.

Settlement Funds Could Help Address Backlog

Fort Collins recently secured a $21 million settlement from a failed billing system project with Open International, which will be distributed among the city's four utility funds. Approximately $5 million will go to the water utility, with those funds going into reserves that could help address infrastructure needs.

"Those are going into the reserve," Wimmer explained to council members. "So in some respects will help our financial picture as we do capital planning, potentially lowering some pressure on rates, but they're not earmarked towards a specific project right now."

The city is increasing its water main replacement program investment in the 2026 budget, though specific dollar amounts were not disclosed during the presentation. Officials are working through a new capital planning process called Enterprise Project Management Office to take a more data-driven approach to prioritizing infrastructure investments.

Why Replacement Rates Matter

Water distribution pipes have varying lifespans depending on material composition. PVC pipes should last approximately 100 years under ideal conditions, while ductile iron pipes typically last 70 to 100 years depending on environmental factors, according to industry standards.

Fort Collins is not alone in struggling to keep pace with infrastructure replacement needs. Many Colorado municipalities aim for the 1% annual replacement benchmark, which allows aging pipes to be systematically retired before they fail.

When municipalities fall behind on planned replacement, they face increased costs from emergency repairs, property damage claims, business interruption impacts, and water loss. These unplanned expenses can strain budgets and ultimately drive utility rate increases for customers.

Northern Colorado's variable soil conditions and water chemistry can affect pipe longevity. Corrosive soils significantly reduce ductile iron pipe lifespan, while extreme temperature swings can make PVC pipes more brittle in cold conditions and weaker in warm weather.

Rate Increases Approved for 2026

The Fort Collins City Council is scheduled to consider utility rate increases November 3 that will help fund infrastructure replacement and other capital needs. The proposed 2026 rates include a 9% increase for water service, 8% for wastewater, 6.6% for electric service, and 6% for stormwater.

For a typical single-family home, the combined utility bill would increase from approximately $190 per month in 2025 to just under $204 per month in 2026, an increase of about $13.48.

The rate increases were originally presented as part of a two-year budget cycle adopted in 2024, with no changes to the previously approved amounts. City officials said they will conduct outreach to commercial accounts and update informational materials before the rates take effect.

City utilities finance staff plan to return to council early in 2026 with a longer-term rate outlook that will reflect updated capital improvement plans and major project costs, including ongoing work at the Drake Water Reclamation Facility and the Halligan Water Supply project.