Don’t be alarmed by higher water bills come the end of the month.

Water rates increased on Jan. 1 for the almost 1.5 million people served by Denver Water, nearly 25% of the state’s population.

The estimated rate increase for a single-family home that uses the same amount of water as it did in 2023 will be an average of $1.60 to $2.30 per month, depending on where they live in the city.

The rate increase was approved Oct. 11 by Denver’s Board of Water Commissioners. The new rates will help fund “once in a lifetime” projects to the city’s water system, an official said.

“Denver Water is at a pivot point. These are historic times and we’ll be affected, just as the communities we serve will be affected, by climate change, population growth, variability in the economy, inflation and supply chains,” Denver Water CEO Alan Salazar said in a news release.

The rate increase will help fund maintenance and improvement projects costing an estimated $1.9 billion over the next 10 years, according to the release. These projects will “upgrade the system and make it more resilient and flexible in the future,” and include the ongoing lead reduction program, the new Northwater Treatment Plant outside of Golden, and replacing aging water mains under city streets.

The average monthly fixed rate has increased by 50 cents to $18.40 per month, according to the release.

After this rate, Denver Water charges residences based on a three-tier system of usage. The first and lowest tier is calculated by “averaging their monthly water use as listed on bills dated January through March each year. This is called their average winter consumption,” according to the release.

Efficient outdoor water usage is charged in the second tier, followed by additional outdoor water use in the third tier — making summer months more expensive for Denver Water users.

The utility does not make a profit or receive tax dollars, it noted. It reinvests money from customer water bills and fees to maintain and upgrade the water system.