Fort Morgan staff project $21 million in wastewater spending for 2027

Fort Morgan staff project about $21 million in wastewater-project spending in 2027 as part of more than $50 million in wastewater bonds expected to fund work over three years. Staff also expect sewer charges to rise to meet bond covenants, though a rate study has not set the size or timing of an increase.

During an Oct. 6 City Council budget discussion, staff outlined the wastewater spending estimate and the bond-funded work. They said an additional $2 million would be needed for project inspections and engineering, and described the bond proceeds and spending as extending over three years.

The presentation also included a separate water-fund placeholder of a little more than $4 million for Fort Morgan’s participation in the Northern Integrated Supply Project, or NISP. Staff said the amount was for an assessment expected at the start of 2027 and that they expected to return before year-end to discuss changing circumstances. Northern Water describes NISP as a regional water-supply project. The placeholder was not presented as a newly approved commitment.

On sewer rates, staff said the city had budgeted for the revenue needed to satisfy wastewater-bond covenants and was working with rate consultants to determine how that requirement would affect customer charges. Staff said they expected sewer charges to increase, but were not then anticipating a water-rate increase.

The council did not vote on the utility-budget figures or a specific sewer-rate change during the discussion.