FAQ’s about Water Billing,
Rates, Smart Meters, High Bills
and Leaks
Why has the District increased water rates?
The Lookout Mountain Water District requires about $1 million per year in
costs. About half of those costs are covered by taxes on real property in the
District and the rest is covered by water charges and other fees paid to the
District. For the last few years property tax collections have been declining
due to aftereffects of the recession while the District's operating costs have
continued to increase. The recent water rate increase is necessary to cover
the growing gap between the District's costs and our revenues, and to help
pay for needed improvements to the District's infrastructure, such as the
new smart meters and the installation of several automated flumes needed
to document the District's water releases and its legal water rights. The
District is not a profit maximizing organization, however, and if the recent
rate increases generate more revenue than we need to balance the
District's accounts, those rates can always be adjusted.
What if my bill seems high?
Your bill may appear to be “high” or “higher than normal” for several
reasons:
• Payment: Check your bill to see if it includes a prior unpaid balance.
If you made a payment that is not shown on the bill: compare the day
you made the payment with the billing date. Contact us if the
payment was made 7-10 business days prior to the billing date. A
payment plan can be arranged for an unusually high bill.
• Usage: Look at the units on your bill. These are listed in thousand
gallon units for the billing cycle of approximately 30 days. See
additional questions below.
• Rates: See questions about rates.
1|Page
Lookout Mountain Water District Frequently Asked Questions - Rates, etc. - 2014
Note that the District converted to monthly billing at the beginning of 2014.
In the past, the billing cycle was always every two months. The new bills
are based on a monthly billing cycle.
Why did the District change to monthly billing and why did we get
new “smart” meters?
More frequent meter reading provides timely feedback about usage and
leaks to customers. This allows customers to respond more quickly and
make changes to consumption. The efficiency of the new meter system
reduced our meter reading time dramatically and records the exact moment
that a meter is read. It also dramatically reduces the risk of human error
during the process. The ultimate goal of these meters is to save water that
would otherwise be wasted or lost.
The old meters, many of which were more than three decades old, became
obsolete over the past ten years. Due to their age and technology, the old
meters had a tendency to be inaccurate, which resulted in under-billing.
“Smart meters” are the new standard in water meters and have been used
by larger water suppliers for over 20 years. The new meters also report
meter tampering.
For these and a number of other reasons the District replaced the meters
for a cost of about $150,000. The District expects to recoup this
investment over the next five to seven years.
When and how is my meter read?
“Smart meters” were installed from July 2013 to January 2014 at nearly all
service locations. The register on the top of the meter is called “smart”
because it stores records of many days and hours of water usage. When
our meter readers drive slowly nearby each meter, the laptop computer in
the vehicle sends out a radio signal to each meter top. The signal “wakes
up” the smart meter top, and extracts the read at that moment. This is
called interrogation and requires that all the components are able to
communicate with one another. After all meters are interrogated, the reads
are loaded off the laptop device and into a reading interface application,
and then into the database and the billing application.
2|Page
Lookout Mountain Water District Frequently Asked Questions - Rates, etc. - 2014
How can I read my meter?
If you want to compare with the District’s meter reading, you can read your
meter from the register, if it is accessible.
 About 50% of our customers have an inside meter, most of which
can be easily read. The others would need to open the meter pit
in order to read the meter. We do not recommend opening the pit
during periods of frigid weather as this could increase the risk of
freezing your service line.
 Consumer “Countertop” devices for meter reading may be
available for sale later this year from our meter supplier.
How do the new water rates work?
Rates are applied according to the usage for each billing cycle, per
thousand gallon increments, after the Minimum Charge.
 Minimum Charge: The Minimum Charge is billed for the use of 0 to
2,000 gallons per month, which is based on a minimum of 24,000
gallons of water per year. If your service is temporarily turned off or if
your use is less than 2,000 gallons, the minimum charge still applies
to all active taps. For a residence, the minimum charge is $20.00 per
month.
 See the applicable rate schedule.
3|Page
Lookout Mountain Water District Frequently Asked Questions - Rates, etc. - 2014
How are the water rates set, and what is their purpose?
The Board of Directors sets the water rates at public meetings and
hearings. They consider many factors, such as the annual budgeted
expenses, the operating cost to produce water,, and the conservation
goals. The Board has the obligation to balance the budget, operate
efficiently, and to meet short and long term goals within the District. The
District presently has about 500 active taps.
The District is a local governmental special district and does not operate for
profit. If there is a surplus of revenue over expenditures in any given year, it
is carried forward and can be used for capital expenditures or to reduce
debt.
The minimum charge for water usage by all customers will generate about
$140,000 in revenue for the year. The additional charges, mostly for higher
water use, will generate about $215,000 or more in revenue. This revenue
will be used to offset operational costs of $575,000 for the year. The
shortfall in revenue over expenses will be supplemented by tax revenue.
What about property taxes?
The remaining District expenses, such as debt, capital expenditures, and
reserve funding, must be covered by the remaining tax revenue (see above
for rate revenue and expenses). The average property owner in the District
presently pays water District taxes of about $850 per year. This is included
as a part of the tax bill from Jefferson County, but the actual amount is
based on the property’s assessed valuation and the District’s mill levy (or
tax rate). The County sets the assessed valuation for each property.
Why can’t we just pay more in taxes instead of water charges?
Some people prefer this method because many homeowners can reduce
federal and state income taxes by taking a deduction for property taxes (for
those who itemize and qualify for an adjustment to gross income). If
property tax was the only source of revenue for the District, a number of
inequities would develop:
4|Page
Lookout Mountain Water District Frequently Asked Questions - Rates, etc. - 2014
 Tax exempt property owners would pay little or nothing for water.
 Assessed valuation of the property would determine how much a
customer pays, not consumption.
 Tenants could not directly pay for their water use.
 Customers who use high amounts of water would not necessarily pay
more than customers who use lower amounts of water.
 Customers who conserve water are not rewarded in the form of
reduced water charges.
What is “normal” usage?
Some estimate that a typical family of 4 in the U.S. uses between 200 - 400
gallons per day, if water is also used for irrigation and other outside use. If
water is not used for outdoor irrigation, daily use is greatly reduced to as
little as 50 to 100 gallons per day, for families sized from 1 to 4. Our SFE
(Single Family Equivalent) water usage in the District has been determined
to be 164 gallons per day.
What does SFE mean? What if I use more or less than my SFE?
The District has studied our ability to sustainably serve water based on our
existing reservoir capacity, “average year” water supply, water rights, and
historical customer consumption. Based on this study, one tap is allocated
as a Single Family Equivalent (SFE) of 60,000 gallons per year.
Rates are structured around the SFE of 60,000 gallons per year or 5,000
gallons per month. The current SFE is equivalent to 164 gallons per day
per tap. At current rates, this is $960 per year or $80 per month. Those
who use less than the SFE will pay between $240 and $660 per year.
Those who use more than the SFE will pay more than $960 per year.
The purpose of defining an SFE is to help ensure equitable treatment of
present and future tap owners and to aid in long-term planning. The SFE
5|Page
Lookout Mountain Water District Frequently Asked Questions - Rates, etc. - 2014
may be adjusted from time to time. Our current SFE of 60,000 gallons per
tap per year indicates that high irrigation use by customers is not
sustainable at this time. Rates are set to encourage water consumption
within the SFE range.
What if my usage seems higher than normal?
If your usage has increased when compared to the past, consider these
factors:
 Did you have guests or an increase in the size of your household,
during the billing period?
 Did you do any outside watering, such as tree or garden watering,
during the billing period?
 Did you use water for unusual needs such as pressure washing,
water features, hot tub filling or car washing, during the billing period?
 Was a hose or other watering device inadvertently left on during the
billing period?
 Have you received a “Leak Notice” Letter? The new meters have a
“leak detect” feature when water does not stop running in a 24 hours
period. The District is sending notices after each billing cycle at this
time.
 Your toilet or toilets could have developed a leak from the tank to the
bowl. This is a very common occurrence. Experts tell us that a leaky
toilet can result in a loss of over 50,000 gallons a month and it can
easily go undetected because it is silent or intermittent. (one gallon
per minute leak equals over 40,000 gallons a month). A simple dye
test kit can be requested from the District at no cost. Complete the
test for all toilets in your house and if a leak is found, the inner
components of the toilet tank can be replaced or repaired
economically by yourself or a plumber.
 Your irrigation system could have developed a leak. Shut off the
system and have an irrigation contractor check and repair the system.
 Your water heater could have developed a leak.
6|Page
Lookout Mountain Water District Frequently Asked Questions - Rates, etc. - 2014
 Your underground pipes or inside plumbing could have developed a
leak. Contact a plumber or other contractor. You may need to have
leak detection performed.
Why do the rates seem higher than what I am used to?
The District has to operate in a financially sustainable way and our cost
structure is not the same as a larger water provider, which often serves
thousands, or hundreds of thousands, of customers. With only 500 active
customers to share in the costs to produce water in this District,
comparatively, water is more expensive. In some places, even some
“smaller” water suppliers may have the benefit of being able to re-sell water
purchased from larger producers, so economies are passed on, but this is
not possible in our District.
These common economies of scale have given the average consumer the
perception that “water is cheap” and thus some customers continue to have
these expectations, even when the cost structure is entirely different.
The District’s water rights are “junior” to a number of downstream users,
and most years we are not able to retain all the water stored in our
reservoirs solely for our use. Release of a portion of the stored water to
which we do not have rights is a common occurrence during the irrigation
season. So the water retained must be fairly allocated among the District’s
customers with water rate conservation measures. During drought years
the conservation measures are more stringent.
Why doesn’t the District join a larger water provider to have a more
economical cost structure, such as the Genesee Water or the City of
Golden?
The Board of Directors has considered this issue for many years. The City
of Golden divested itself of our system in the 1970s and does not wish to
take it back (we’ve asked!). This is a highly complex matter involving water
rights and other legal considerations. Feasibility requires raw and treated
water being in the right place at the right time, while following Colorado
water law. Without going into the details, rest assured that at any time this
alternative becomes feasible, the Board would pursue it.
7|Page
Lookout Mountain Water District Frequently Asked Questions - Rates, etc. - 2014
What about well water?
The use of wells and the transportation of well water are also highly
regulated in the State of Colorado. Without going into the details, rest
assured that at any time the use of wells becomes a reasonable alternative,
the Board will pursue it.
What about fire risk, hydrants and irrigation?
Many of our customers are rightfully concerned about wild land fire
because the majority of the District is within a high risk area for wild land
fire due to topography, vegetation/fuel loads, weather patterns, lack of
hydrants, etc. Some customers have said that irrigation should be
encouraged or that more hydrants are needed. The primary purpose of the
District is to provide a high-quality domestic water supply to the residents of
the District, and the District has the ability to draw emergency water
supplies from neighboring water Districts. Fire suppression is a secondary
purpose, but we do cooperate fully with local fire protection districts. There
are many ways to reduce the risk of fire damage to property, and we
encourage property owners to pursue whatever measures they find to be
relevant, feasible, and economical to their situation.
What if I have a billing dispute?
The District has Policies to address disputes about meter accuracy and
billing, and these are available on the website. If a billing issue cannot be
easily resolved with our administrative staff, disputes about billing may be
heard at Regular Board Meetings, which are normally held the second
Monday of each month; it is recommended that your request and
explanation for dispute be made in advance, in writing, especially if you are
not able to attend in person.
Please see www.lookoutmountainwaterdistrict.org for meeting information
and to request inclusion on the agenda.
• Meter tampering is prohibited and penalties apply.
• Unpaid water charges can result in shut-off, additional fees and liens.
8|Page
Lookout Mountain Water District Frequently Asked Questions - Rates, etc. - 2014
If I discover a leak, pooling water, or water line break, who should I
call?
 On your property: If the leak or break is inside your house, on your
property, or emerging from part of your private service line, call a
plumber or contractor and use your inside shut-off valve. The
greater the water loss and the resulting damage, the sooner you
should take action. Homeowners are responsible for service lines
and indoor plumbing. Contact the District for an outside shut-off if
necessary (trip fees apply). Leaks after the meter may result in a
higher bill than normal.
 Not on your property: If the break or leak is in or near the street or
in a common area, if possible make an assessment-- Is a lot of water
being lost, is it causing any damage or is it creating a hazard? If yes,
call 303-688-7072 (24 Hour Answering Service) to report it as soon
as possible. Try to identify the location with the closest street
address and other description (for example, “in the ditch about 400
feet west of 205 Paradise Road driveway, on the south side of the
road). If it is not a serious problem, call 303-526-2025.
Please provide your name and telephone number so that we may call
you back if necessary. Staff will determine what action needs to be
taken. In some cases the problem will be referred to the owners of
the Lateral.
Repairs to water lines may result in water outages, which often cause
discolored water, bubbly water or bursts of air in pipes. All homes need
to have a working PRV (pressure reducing valve) to protect domestic
plumbing from damage. The District is not responsible for the service
line, PRV or domestic plumbing.
9|Page
Lookout Mountain Water District Frequently Asked Questions - Rates, etc. - 2014