(FOUNTAIN, Colo.) — The City of Fountain voted to increase water rates for those living in the area, to cover increased costs and needed maintenance for the foreseeable future.

The measure passed with six yes votes during a city council session on Wednesday, Feb. 26. According to a water rate study released by the City Council, in 2024 a resolution was passed that would establish a Water Fund Stabilization Plan. The goal was to eliminate the use of an inter-fund loan that the water utility has utilized in the past from the electric side of the utility to balance the books. As of 2023, the loan balance was over $4 million.

The City also said its combined utility rating was downgraded due to a weak cash position and a low net revenue-to-debt ratio. The Water Fund Stabilization Plan was designed to eliminate the loan and establish a reserve of funds.

The law will increase rates for residential homes to about $6.50 per 1,000 gallons for water use up to 1,500 gallons, then increase the rate per 1,000 gallons based on set water usage intervals.

The full rate schedule for residential, commercial, and other sized meters can be found on the City of Fountain’s website.