Understanding Your 2026 Water Rates: What’s Changing and Why
December 5, 2025

At Little Thompson Water District (LTWD), we’re committed to providing safe, reliable and great-tasting water at a fair price. Each year, we take a close look at the cost of operating and maintaining a system that serves more than 10,000 residential and over 400 non-residential business and commercial customers. That includes everything from pipeline repairs to storage and pumping to administrative services and long-term planning for a growing community.
Our annual review of our budget and rates helps us ensure we continue delivering the highest-quality water possible. But it also means that when operational costs rise, rates need to be adjusted accordingly. After a public rate hearing in November 2025, the Board of Directors approved the 2026 water rates. These changes reflect the real costs of providing clean water and allow LTWD to continue operating responsibly without compromising service.
Below is a full breakdown of what’s changing, why rates are increasing and how you can stay in control of your monthly bill.
What’s Changing in 2026
Beginning January 1, 2026, customers will see the following changes on their monthly bills:
- 15% increase to both base and tiered rates
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Water allotment surcharges
- Conservation surcharge: $20 per 1,000 gallons of overage (no change)
- Standard surcharge: $10 per 1,000 gallons of overage (previously $8)
Our Board of Directors understands that rate increases, no matter the amount, affect our customers. They take this responsibility seriously and do not make these decisions lightly. Each rate adjustment is carefully considered, balancing the financial impact on our community with the necessity of supporting long-term system reliability. These increases are essential to ensure we can continue providing safe, clean water to all of our customers and maintain the high-quality service you rely on.
Why Rates Are Increasing
Funds are used exclusively to provide clean, reliable drinking water. Each year, LTWD faces rising operational costs due to inflation affecting materials, equipment, electricity and labor, as well as increased construction expenses for capital projects. Additionally, LTWD is 64 years old, and our aging infrastructure requires ongoing, proactive repairs and replacements to meet the growing demands of our community. With over 650 miles of water lines to maintain, the cost of keeping these systems functioning and up to date is a critical investment in ensuring we can continue delivering the safe, reliable service our customers depend on.
LTWD is a Title 32 special district under Colorado state law, which means we operate with a focused, community-centered mission and have specific financial and operational guidelines:
- Our sole mission is delivering safe, treated water to our customers, with every decision and dollar spent dedicated to maintaining and improving our water system.
- We only generate the revenue needed to cover operational costs, ensuring that every dollar is carefully allocated to sustain our services, infrastructure and customer needs.
- We do not set rates to fund unrelated programs or services, and there is no general fund we can tap into if funds fall short. This means that rate increases are strictly necessary to maintain our core mission of providing reliable, clean water without any surplus or extraneous funding goals.
How Your Bill Works
Your monthly water bill is made up of three main parts: the base rate, the usage rate and then any fees and surcharges associated with your account or that you may incur. Understanding each part can help you better manage your water use and anticipate future bills.
Part 1: The Base Rate
The base rate is a fixed monthly charge that covers LTWD’s essential operations. This includes:
- Repairs and capital projects
- Ongoing system maintenance
- Staff, administrative services and customer support
Part 2: The Usage Rate
While your base rate is fixed, the usage rate depends on how much water you use each month. To encourage conservation and reflect the actual cost of delivering water, LTWD uses a tiered pricing structure. Most taps have three usage tiers, although our most common tap, the 5/8” standard residential tap, has five tiers.
- Tier 1 – Indoor Essentials: This lowest-cost tier covers basic daily needs such as drinking, cooking, bathing and laundry.
- Tier 2 – Efficient Outdoor Use: This tier covers modest outdoor watering or higher indoor use. Costs increase slightly because outdoor demand places more strain on the system.
- Tiers 3-5 – High Outdoor Use: These are the highest tiers and reflect the increased cost of pumping and treating large volumes of water, especially during peak summer months.
Tiered pricing encourages efficient water use and helps keep systemwide costs lower in the long run.
Part 3: allotment surcharges & Other Fees
Your property’s water allotment is tied to your tap size, which was determined when your home or building was developed. Tap sizes are designed to match the expected water demand for each property type, helping LTWD manage water supplies responsibly.
Because LTWD is a wholesale water provider, we must purchase, store, treat and deliver water. Allotments make it possible to balance supply and demand in a fair and predictable way.
Most customers never exceed their allotment. But if you do, surcharges vary depending on the type of tap you have
- Conservation tap surcharge: $20 per 1,000 gallons over your allotment.
- Standard residential tap surcharge: $10 per 1,000 gallons over your allotment.
A helpful reminder: allotments reset each January. If you exceeded your annual allotment during irrigation season, you’ll still see surcharges through the end of the year. However, winter use typically brings those charges down because outdoor watering stops. Once the new year begins, you’ll no longer see that surcharge on your bill and you can start fresh.
How to Keep Your Bill Manageable
While rates are increasing, there are several ways to stay within your budget and reduce overall water use.
- Use EyeOnWater to track your usage: EyeOnWater is a website and mobile app that gives you a daily look at your water consumption. If your usage spikes, you can quickly spot leaks or make adjustments before they turn into bigger problems. Note: EyeOnWater is not available to all customers; be sure to confirm your account is eligible.
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Take advantage of conservation programs: LTWD partners with Resource Central to offer our customers a number of free or reduced cost programs:
- Garden In A Box: Beautiful, low-water gardens that reduce outdoor water use by up to 60 percent.
- Slow the Flow: Free sprinkler system audits to improve efficiency.
- Lawn Replacement: Consultations and programs for removing thirsty turf.
- Tap into our conservation rebates: LTWD offers rebates for various water-saving initiatives, such as replacing traditional lawns with water-wise landscaping, installing smart irrigation systems, and purchasing water-efficient appliances.
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Make small, meaningful water-use changes, especially during irrigation season:
- Adjust irrigation schedules seasonally
- Water early in the morning or later in the evening
- Use mulch around plants
- Check regularly for leaks
If you ever have questions about your bill or more information about our conservation programs, our customer service team is always happy to help at (970) 532-2096 or info@ltwd.org.
Our Commitment to You
At Little Thompson Water District, our mission is to provide safe, reliable and affordable water for our community. Rate adjustments are sometimes necessary, but they are always made responsibly, transparently and with the long-term health of our system in mind. These changes ensure we can continue to maintain high-quality infrastructure, manage limited water supplies and support the growing needs of our district.
Thank you for being a valued LTWD customer and for doing your part to use water wisely. Together, we are building a strong and sustainable future for our community.
