Loveland adopts utility rates; staff project $13 monthly increase for average residential customer

Loveland City Council adopted 2027 utility rates Oct. 6 that staff estimate will add about $13 a month to the average residential customer’s combined water, wastewater and power bills.

The new rates, charges and fees for city services, stormwater and utilities replace prior schedules for bills mailed on or after Jan. 1, 2027. The schedule adds a 2.85% service charge to citywide transactions paid by payment card. The residential street-maintenance utility fee rises from $4.76 to $5.81 per dwelling unit; the street capital expansion fee rises from $441.15 to $470.13 per trip generated. The mandatory monthly recycling fee rises from $9 to $9.25 for single-family homes, duplexes, triplexes, town homes and mobile homes.

The council also adopted the 2027 city budget on first reading Oct. 6. It adopted the unchanged 2026 General Fund property-tax rate of 9.564 mills on first reading, for taxes payable in 2027. The city’s staff report scheduled second reading and adoption of the budget for Oct. 20.

A resident warned that the utility-rate increases could burden seniors and people on fixed incomes. “Could we maybe look at 10% to contingent reserve and fund some of these capital projects that need to be funded?” the resident said. The city manager said Loveland has not spent down its emergency contingency reserve, though it is below its $1.5 million unassigned fund balance target. Staff said the contingency reserve is for emergencies, not ongoing expenses, and should be repaid as quickly as possible if used.

A council member asked what recurring spending cuts had been considered before presenting the budget, saying, “I know no other way to say this other than we are spending beyond our means.” Staff said it sought no additional department cuts for 2027 after prior reductions and would pursue cuts if the community did not support more revenue. Staff put the annual capital-maintenance funding shortfall at no less than $15 million. The 2027 General Fund capital plan totals $2,596,473, including $2 million for major facilities maintenance and $400,000 for Mehaffey Park playground safety improvements.

For new housing, the council adopted capital expansion fee adjustments that exclude the street capital fee and emergency services impact fee. The 2027 schedule raises the total fee from $13,617 to $14,189 for a single-family home and from $9,417 to $9,811 for a multifamily unit. The resolution’s supporting material says the Denver-area construction cost index increased 4.2% from September 2025 to September 2026.

Staff said the budget would not balance over five years if it funded capital maintenance at the needed level under the city’s current revenue structure. Staff are discussing outside help for community budget conversations and plan to compile a citywide list of departmental needs before the 2028 budget process. Those conversations will weigh priorities, revenue and possible cuts to services or programs, with all options under consideration, staff said.