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Water Supply Requirements#

Horsetooth Reservoir

Fort Collins Utilities assesses Water Supply Requirements and assigns water allotments to all non-residential (commercial and irrigation-only) customers who are developing or redeveloping a property with a water tap. The one-time fee is based on the property's anticipated water use, and helps offset the impacts to the City’s water supply system. This process ensures that our community shares in the responsibility to guarantee a reliable source of water for years to come.

The 2024 WSR fee is $68,200 per acre-foot (325,851 gallons) and only applies to accounts within Utilities' water service area. The fee will decrease slightly in 2025 to $63,800 per acre-foot. To learn more about that change, you can watch the Oct. 15, 2024 City Council meeting here (starting at about 1:06:00).

WSRs are met by developers to account for the additional demand created from new developments. These water supplies ensure a reliable source of water and are translated into an equivalent annual water allotment for non-residential (commercial and irrigation) taps. When the allotment is exceeded, an excess water use surcharge is applied to water used over the allotment for the remainder of the year.

WSRs will be evaluated for non-residential taps on properties that apply for a change of use permit, a Minor Amendment, or any development review process per Ordinance 119,2021. 

  • WSR Calculation: 
    • If the commercial use type or landscape requires a higher WSR, you will be credited for the current allotment and required to pay WSR fees for the difference to satisfy the higher WSR. 
    • If the commercial use type or landscape requires a lower WSR, you will not be required to meet any additional WSRs, and the allotment will stay the same.

  • Allotment Assignment: 
    • If a water account associated with the permit application does not have a current water allotment, one will be assigned. 
    • If a water account associated with the property has an allotment, the allotment amount will be reviewed for sufficiency. 

  • Water Supply Requirement (WSR): A WSR accounts for the additional water demand, defined in gallons or acre-feet of water, brought into the Utilities water service area by a new development or redevelopment. WSRs provide the revenue to develop reliable water resources for the development, including water rights and associated infrastructure.

  • WSR fee: A development fee collected to pay for the water necessary to serve either a new development or redeveloped non-residential properties that require a larger tap. The fees can vary based on a development’s characteristics (e.g., square footage, business type, number of bedrooms). Developers pay the fees during the building permit process. WSR fees do not apply to redevelopment unless the property needs more water than is currently allotted.  

    WSR fees:

    • Ensure secure water sources and protect the watershed
    • Provide a financial mechanism to ensure current and future assets are adequate to meet community water supply and service needs
    • Balance current needs and supply and future potential needs and acquisitions

    In general, the fee varies such that lower-water-use developments pay less, while higher-water-use developments pay more. Non-residential and irrigation accounts’ WSRs are translated into annual water allotments. Surcharges are applied when the annual water allotment is exceeded.

  • Allotment:  The volume of water a tap can use in a 12-month period (Dec. 1 – Nov. 30) before incurring an excess water use surcharge. The allotment volume is determined by the Water Supply Requirement (WSR) fee paid at the time of development plus any increases to the allotment paid for after development. A customer may increase an allotment by providing City water certificates and credits or by paying a WSR fee. Allotments only apply to non-residential taps.

  • Excess water use surcharge: A volumetric charge based on all water used through the remainder of a 12-month billing period once a customer has exceeded their annual allotment. The 12-month accrual period is Dec. 1 – Nov. 30. A surcharge is applied in addition to the regular utility rates.
     
  • Non-residential: All commercial, industrial, public entity, group housing, nursing homes, fraternities, hotels, motels, commonly-owned areas, club houses, and pools, including HOA common spaces and irrigation accounts.

Frequently Asked Questions#

Depending on the type of development, the following information must be included on the respective plans (see Development Application Submittal Requirements for specific information):  

  • All Development Types: Complete a Water Fee Form and submit it as part of the Final Development Plan (FDP).
  • Non-residential: For non-residential entities within the Fort Collins Utilities water service area (see this map to determine your water provider), include the non-residential Water Supply Requirement use type and corresponding square footage on the Development Plan Land Use Table. Use types are available in Section 26-149 of the municipal code.
  • Irrigation: A Water Use Table for each irrigation tap must be included on both the Landscape Plan and the Irrigation Plan.
  • Residential: Include an Outdoor Area calculation on the Site Plan for single-family and duplex developments. The number of bedrooms must be included on Development Review plans for single-family, duplex, and multifamily developments.

WSR may be satisfied with cash or by existing City of Fort Collins Water Certificates, Credits, or Josh Ames certificates (per City Code Section 26-150). A 1.92 factor will be applied to any certificates issued prior to Jan. 1, 2022, to ensure their historic value is maintained under the WSR system that was adopted that day. See Water Development Fees for more information. 

While WSR payments can be made at any time, payment is required upon the issuance of a building permit. If the WSR is pre-satisfied prior to the issuance of a building permit, they cannot be refunded or transferred to another project.

Depending on the type of account, some customers use more water than others. Water allotments are based on the WSR provided to Utilities to meet the customer’s needs. Funds collected through surcharges help offset any water use that exceeds the allotment and allows Utilities to acquire additional water supplies.

Unlike regular utility rates, which cover the cost of operation and maintenance of the distribution system, revenue from surcharges go toward acquiring, developing and improving Utilities’ water resources to lessen the impact of customers exceeding their planned water demands/allotments.

The surcharge will appear on the monthly bill when the allotment was first exceeded. It will be applied for the remainder of the calendar year as well. For example, if a customer exceeds their allotment in the middle of July, the surcharge will appear for the first time on the July bill and will appear on all subsequent bills for the remainder of the year. The 2025 surcharge rate is $15.59 for every 1,000 gallons.

First, contact Utilities Water Conservation at 970‑416‑4371 to determine if it is necessary to increase the allotment. If it is, customers can pay to increase the allotment at any time.

The WSR can be satisfied by using an alternative compliance method if the applicant’s calculated WSR is 20% less than the WSR calculated under City Code Section 26-150, the applicant’s calculated WSR is appropriate based on all known facts, and the applicant’s WSR does not adversely affect the water utility. An example report with the types of information to include for an alternative compliance application can be found here. There is not an alternative compliance process for single-family residential or multi-family WSR.

Apply for alternative compliance

Reach out to our Utilities Business Resource Team at UtilitiesBizResourceTeam@fcgov.com or 970‑416‑4371.

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