Water connection costs

Although critics say Denver Water’s calculations can inflate costs, the city still has some of the lowest water infrastructure costs in the region because of its ample water rights relative to other communities. Younger suburbs have had to pass on more expensive water costs in their connection fees. Sewer tap fees can add another $4,000 to $10,000 in costs per home.

$30,500 $28,048 $27,110 $24,770 $22,454 $22,379 $20,742 $19,565 $19,275 $19,247 $19,123

$8,420

“Cities don’t see their role in housing affordabilitywith respect to what they are charging for tap fees,” he said.

Afloat in high-cost waters

A lot of different components go intowater infrastructure costs, such as the scarcity of available water, the difficulty in getting it to customers and what share of expenses are recouped up front during construction versus over time in monthly bills.

A 2015 report by Western Resources Advocates on water connection charges — which looked at 800 communities in five fastgrowing states, including Colorado — illustrates how much such costs can vary.

Average water connection charges for a new single-family home incoloradowere $12,400. In Georgia, water tap fees on a single-family home averaged $900, while innorthcarolina they averaged $1,000. But even in arid states such as Arizona, tap fees on a new home averaged $5,200, while in Utah, they averaged $2,900.

“The (contrast in) findings were surprising to us,” said Amelia Nuding, a senior water resources analyst at Western Resource Advocates, whose report didn’t dive intowhy Colorado tap fees are somuch more expensive.

Colorado has a complex system of water rights, which adds to costs. Also, the bulk of residents in the state live east of the Continental Divide, while the bulk of thewater supply is to thewest, necessitating expensive diversion projects.

As expensive as Colorado’s water connection costs are compared with other states, some cities along the northern Front Range charge at least double the state average.

In Thornton, water connection charges, which include an allocation of water supply, run $24,770 on a single-family home, with the sewer connection bringing the total up to $30,593.

In Parker, connecting a singlefamily home runs $27,110, with the sewer costs adding another $3,550. In Louisville, water taps for a single-family home run $30,500, while a sewer tap runs $4,600.

Denver Water, which serves Denver as well as Wheat Ridge, parts of Lakewood, Centennial, Littleton and Greenwood Village, represents a comparative bargain.

Connecting the typical home within Denver city limits runs $8,420, while one outside the city costs $11,786. A standard sewer tap runs another $4,630.

So, what do higher tap fees mean for consumers?

Iadarola, who has decades of expertise in the finances and engineering ofwaterprojects, estimates every extra $1,000 of costs embeddedintoahomeorapartment translates into an extra $5 in the monthly mortgage payment or rent.

Fixated on fixtures

The water-use formulas at the heart of the debate over water infrastructure costs in and around Denver trace to 1940, when a National Bureau of Standards engineer named Roy Hunter devel-

oped models to estimate peakwater demand. His work became known as “Hunter’s curve.”

These models, which take into account the number of water fixtures in a building, inform requirements set by Denver Water and other utilities for the size of buildings’water connections. The larger that connection, the more resources or capacity a utility needs to set aside, and the more a builder or developer pays.

But critics argue these models don’t reflect how modern appliances and fixtures handle water. Because costs are higher to begin with along the northern Front Range, adding too much capacity comes with a bigger financial hit.

Modern homes have more bathrooms and fixtures than those of past generations, but average householdwater use has declined since 1995, according to a study from the American Water Works Association.

Modern meter logging technology, available but not widely adopted, allows water engineers to preciselymeasure how much water a home or building is using, including the spikes in demand that determine peak capacity.

Even after adding in a comfortable margin of error, homes and other buildings could get by on much smaller taps thanwhat utilities in the region now require, Iadarola said.

“We know how much water people use,” said Wilson, the development consultant. “Just charge people for what they use, and you will need to develop less infrastructure.”