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We want to inform you of upcoming water, sewer, and trash rate adjustments, effective January 2026, and therefore reflected on your bill mailed in February. These changes are based on careful financial analysis and long-term infrastructure planning designed to sustain high-quality, reliable, and safe utility services amid rising costs for materials, labor, maintenance, and essential capital investments.
While much of our underground infrastructure goes unseen and undervalued, these investments are important to meet today’s service delivery demands and the needs of our community in the future.
Water
In 2026, water rates will increase by 10% on the base rate (up to 7,000 gallons) and by 20% on each tier above the base. These adjustments are part of the Town’s proactive approach to maintaining a strong water enterprise fund. They help cover rising costs related to infrastructure and expansion needs, routine maintenance, required regulatory upgrades, and overall inflation affecting the cost of providing clean, safe water across Colorado.
Wastewater/Sewer
In 2026, wastewater (sewer) rates will increase by 25%. This is the final increase outlined in Ordinance 10 (Series 2023), which established a multi-year plan to gradually increase wastewater collection and processing fees. The ordinance included 40% increases in 2023, 2024, and 2025, followed by 25% in 2026. These increases were carefully calculated to fund the required expansion and upgrades to Gypsum’s wastewater treatment plant, which is currently underway.
Sanitation/Trash
In 2026, sanitation (trash) rates will increase by 2%. This modest increase reflects general inflation and helps ensure the sanitation fund continues to fully cover the cost of providing trash services to residents who choose the Town’s service.
Looking Ahead
While rate adjustments beyond 2026 for all the above enterprise funds have not yet been determined, they will, at a minimum, be indexed annually to 1.5% above the Consumer Price Index for Denver–Aurora–Lakewood (CPI-U).
In 2023, water dedication and sewer tap fees increased by 71%, and water tap fees by 33%. We will again evaluate appropriate fee increases in early 2026 as part of a municipal code update. Land developers pay water dedication fees to cover the cost of providing adequate raw water resources needed to support their developments. Water and sewer tap fees are paid by new developments to help fund associated capacity improvements for the water and sewer systems.
Learn more about the Municipal Budget and its General Fund and Enterprise Funds (i.e., Water, Wastewater, and Sanitation) structure and the laws that govern them on our Town Budget page on our website.
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