In January, Kremmling residents will see an increase in their water utility bills to help fund a new water treatment plant.

For most residential users, the total bill will rise to $157.50 a month from the 2024 rate of $125.75 for the first 6,000 gallons of water. Commercial users will also see an increase based on tap size. For example, the bill for a 2-inch tap would be $349 up to 6,000 gallons.

On Dec. 4, the Kremmling board of trustees discussed the rate increase. Sara Everhart, a small-utilities consultant for Rural Community Assistance Corp., presented at the meeting.

The town partnered with Rural Community Assistance Corp. to conduct a water rate study, which is required for the town to apply for state revolving fund loans and grants. These loans and grants will offset the costs residents must pay to fund the treatment plant.

According to Everhart, the town’s rate increase falls within the affordability index for median household income. Kremmling’s median household income is $57,454 a year, and the town hasn’t had a significant water rate increase in 10 years, Everhart said.

She also calculated how much it costs Kremmling to produce water. The town produced 63 million gallons last year at a cost of $1.33 million or about two cents per gallon.

The town stated that the estimated project cost for the treatment plant is currently $16.9 million. The plant will provide an ultrafiltration system to better treat pathogens and PFAS, also known as forever chemicals. Construction of the new plant is expected to begin in spring 2025 and be completed in the fall.

How the water treatment plan is funded:

• Project cost: $16.9 million
• Grants: $4 million
• Loans: $12.9 million

Loans and grants come from the state revolving fund and the Colorado Department of Local Affairs.