The City Council has approved a $2.2 billion budget for 2026, marking a 23% increase over the previous year. The budget aims to fund critical infrastructure projects across all four city services, focusing on maintaining reliability, complying with regulatory requirements, and supporting a growing population.
City officials clarified that while the budget is increasing significantly, customer bills will not rise by the same percentage. The increased spending is mainly allocated for capital projects and will be financed largely through bonds. The city’s strong credit ratings allow it to borrow at lower costs, which helps keep utility rates competitive for residents.
The bonds are backed by a previously approved base-rate increase for 2026 of about 6.5%. This will result in an average monthly bill increase of $14.87 for typical residential customers using all four services. The rate adjustment is part of a five-year plan adopted by City Council in 2024, with similar increases expected annually through 2029.
According to city statements, “This budget supports the historic investments we need to serve our community. Over our 100-year history, we’ve built and maintained about $5 billion of infrastructure. We expect to add another $4 billion in assets by 2029.”
Major projects planned over the next four years include the Horizon Utility Campus, which will receive $618 million to add 400 megawatts of cleaner energy and storage capacity; a $253 million fiber network expansion intended to improve utility operations and provide fiber internet throughout the city; and a $130 million expansion of the Kelker Substation to address increasing energy demands.
Other significant projects are the Continental-Hoosier System Project, which will receive $111 million to boost water storage capacity, and a wastewater system expansion valued at $396 million.
The city’s five-year financial strategy aims to fund these initiatives while maintaining competitive rates compared to other Front Range communities. On average, residents pay about 6% less for utilities than those served by neighboring providers.
