Fort Collins council presses for broader utility-bill aid as rate increases loom

Fort Collins council members on May 26 largely accepted staff’s case for higher utility rates to maintain and replace aging infrastructure, but pushed for stronger affordability protections for residents who could struggle to pay more. Questions from Mayor Emily Francis and other council members focused on whether the city should expand income-based assistance, reach renters whose utility costs are folded into rent, and prepare in case federal energy-aid funding is cut.

Staff said the city’s affordability programs already reach a wider income range than some residents may realize. Utilities Affordability Programs Manager Shannon Ash said the Income-Qualified Assistance Program, or IQAP, is tied to LEAP, the Low Income Energy Assistance Program, and uses a threshold of 60% of state median income for automatic enrollment. A separate payment assistance fund, run in partnership with Energy Outreach Colorado, reaches households up to 80% of area median income. Staff later said 100% of area median income for a four-person household in 2026 is about $130,000, meaning the 80% threshold can include many working families.

Francis repeatedly framed the discussion around equity rather than the need for utility investment itself. She said she wanted to avoid “punish[ing] those who can’t” afford higher bills and asked what it would cost for the city to fully backstop IQAP if LEAP support disappeared. Utilities staff said the current 25% IQAP discount represents about $500,000 to $600,000 in foregone utility revenue, and replacing the LEAP-supported portion would add another roughly $500,000 to $600,000. Staff said the effect on rates would likely be less than 0.5% across the four utilities.

Staff also said they have considered contingency planning if federal support becomes less reliable. Shannon Ash said LEAP has been funded each year despite recurring uncertainty and bipartisan support has helped preserve it. Even if LEAP were eliminated, she said, the city could still run its own internal process to keep IQAP assistance in place, though customers now benefit most when they receive both LEAP and IQAP.

A major concern was who gets left out of current programs. Francis said many low-income renters live in units where landlords pay utilities directly and fold the cost into rent, meaning tenants can still feel the impact of rate increases without qualifying easily for assistance. Staff said that when utility accounts are not in a tenant’s name, matching residents to assistance is difficult and often manual. One current workaround is for a tenant to ask to be added to the account, allowing staff to find and apply the IQAP rate. Ash said a new customer information system expected this fall should make that process easier.

Council also asked about outreach to harder-to-reach households. Francis asked whether the city would continue partnering with La Familia and Housing Catalyst to help residents use alternate enrollment pathways for IQAP. Staff said the city plans to continue and, if possible, expand that work, but La Familia has seen lower in-person participation because some residents are afraid to share information. Housing Catalyst has seen more participation, staff said, though with different challenges.

The discussion broadened to other structural gaps, including master-metered apartments and mobile home parks. Staff said residents in mobile home parks with master water meters cannot receive the IQAP water discount directly because they are not the account holders, calling that an ongoing and significant problem. Staff said they are preliminarily exploring whether a blanket IQAP rate could be applied at income-qualified properties, such as Housing Catalyst sites, to remove barriers where residents already must meet income limits to live there.

Francis also asked whether the city should create a more stable funding source for emergency and one-time bill help beyond voluntary donations on utility bills and unclaimed property from closed accounts. Utilities staff said the city is actively evaluating ways to create a sustainable funding source for those programs. For now, donations still help leverage matching funds through Energy Outreach Colorado.

The affordability discussion came as staff also defended the financial case for higher rates, citing aging pipes, water main breaks and large future capital needs. Councilmember Josh Fudge said it would help to show residents how current fund balances will be used so that rate increases are not seen as unnecessary. Staff said reserves are already being drawn down to fund capital projects, but that approach cannot continue indefinitely because it relies on one-time money.