The Town of Gypsum's new water rate program combines tap fee increases (which took effect in May of 2023) with commercial and residential water rate increases and base-rate and volumetric usage tiers to proactively strengthen the water enterprise fund to contend with current and future infrastructure costs as well as encourage water stewardship by our users. The main reasons for these adjustments are:

• Gypsum last raised water rates in 2001 and tap fees in 2007.  The 2023 increases are required to ensure water charges are aligned with the actual costs of producing and delivering safe, reliable water services to users today. 
• The rising costs of water in Colorado and general inflation in the cost of producing and distributing treated water.
• Foster awareness of water use and promote conservation of this precious resource.
• Proactive financial planning to support water system infrastructure maintenance, capital improvements, future system expansion, and regulatory requirements.

An important distinction to make is that the water fund is an Enterprise Fund that covers the cost of providing specific services to the community, such as water, wastewater, and trash services. Enterprise Funds must be self-sustaining, meaning that the fees charged to users for these services should cover the full cost of providing the service, including operating expenses and capital expenditures, without relying on subsidies from the General Fund.  So, while the Town's General Fund is healthy, rate increases can be necessary for Enterprise Funds like the water fund to ensure that the Enterprise Fund remains self-sustaining. 

Despite the increase, the Town of Gypsum's water rates are still less than those in most neighboring municipalities. The water rate structure includes adjustments to the base rate and tier structure for both residential and commercial water accounts. With these rate changes, most residential users will see an increase of $19 per month in their base fee, and most commercial accounts will see an increase of 23% in their base fee. Properties utilizing town water for irrigation or process water will pay higher fees based on the amount of water used. 

The Background & Timeline:

The Gypsum Town Council started their discussions about possible water rate increases and tier changes in June of 2023 at a public work session (on 6/12/23). At this meeting, town staff presented financial and water system capital planning information to the council and proposed three different water rate structures that aimed to secure the financial stability of the Water Enterprise Fund and encourage water stewardship by users. In this meeting the council identified the scenario they most supported and then directed the staff to put the items on the a Town Council Meeting agenda in late July/early August 2023 for review and consideration, along with additional updates to Title 13 (Public Services) of the Gypsum Municipal Code.  

The “First Reading” of Ordinance No. 10 (Series 2023) An Ordinance Providing for the Amendment of Title 13 of the Gypsum Municipal Code took place at the July 25, 2023, Town Council Meeting. During the the meeting, (which is available for viewing here) it was discussed that this ordinance would update elements of the town code to remove water rates and fees from the municipal code, so that new water rates and fees could be presented to the council for consideration and potential adoption via Resolution at the August 8^th Town Council meeting.

In the meantime, town staff published a news article and distributed a press release to Vail Daily Reporter, John LaConte on August 1, 2023 in an effort to alert the public that this subject would be coming up for discussion at the August 8, 2023 Town Council’s Meeting.

On August 4^th the town staff published the August 8^th Town council meeting agenda, including the full text of Ordinance No. 10 (Series 2023) and Resolution No. 13 (Series 2023) “A Resolution of the Town council of the Town of Gypsum Adopting Fees as Authorized by Title 13, Sections 13.01.070, 1.01.090 and 13.01.290 of the Gypsum Municipal Code” to the town’s website and distributed this agenda to all email subscribers to the town’s communications list. The Vail Daily then also published an article by John LaConte on August 6, 2023 called “Gypsum to proposed water rate increase on Tuesday, residents encouraged to weigh in.”

The new water rate structure was then discussed in public at the August 8, 2023, Town Council Meeting.  Several Gypsum residents attended the meeting and spoke to the Council and shared their comments regarding the water rate proposal.  The council heard both critical and supportive feedback from the public at this meeting regarding the water rate fee increases.  Subsequently, the council passed Ordinance No. 10 (Series 2023) on Second Reading and also passed Resolution No. 13 (Series 2023) officially updating the town’s water rates and charges.  The meeting is available for viewing at this link. Town staff then published another notice on August 9th about the approval of the new rates at the August 8th meeting.

For further questions and information about the new water rate structure, please contact any of the the Town of Gypsum staff listed below.