Denver’s water system is aging and crumbling.

4 million gallons of water gushed from a ruptured 30-year-old pipeline in February 2008,  gouging a 40-foot-wide, 16-foot deep sinkhole across three lanes of Interstate 25, backing up traffic for 10 miles during rush hour.

While it meets all federal regulations, pharmaceuticals were found.

-    No estrogenic compounds detected, but trace amounts of antibiotics were

The water system needs expensive upgrades.

•    $863.8 million for the water system from 2008 to 2017

-    $290.5 million to expand storage capacity

-    $32.8 million for a transmission conduit

-    $25 million for a reservoir rehabilitation project

Three years of drought took a toll on the water department’s finances. Water conservation means less water sold and thus less revenue brought in.

Fortunately, the water supply reservoirs are refilled after an unusually wet winter

A comprehensive set of conservation measures and incentives

-    Goal: 22 percent water use reduction by 2016

-    $1 million in rebates to residents using water-efficient fixtures and appliances in 2007

-    Increasing block rate structure rewards efficient water use

Second best rated by a Boulder environmental law and policy group, Western Resource Advocates, for its conservation program, water rates, water loss and efficiency

-    Water use dropped by 5.7 percent from 2006 to 2007

Denver has an inclining block structure, charging residents higher rates for water used at higher volumes. This water structure encourages efficient water use.

Low water users saw a decrease in their annual bill, while high water consumers saw in increase.

-    For a city household that uses 120,000 gallons a year, water rates decreased by more than 3 percent. The bimonthly bill is $27.19 during the winter and $53.57 during the summer. 

. $13 added to the annual bill of a typical city residential customer, increasing it from $280 to $293.

. Denver water overcharged thousands of suburban households by $1.5 million over 2007 because of a math error

-    Computer model mistake caused 35,000 households to be overcharged on seven bills

-    Most households overpaid by $44 for the entire year, but 15 households paid $1,000 more than they should have.  The city is refunding them.

. Since 2003, Denver taxpayers paid at least $117,000 for bottled water and water coolers for city officials, employees and their guests

-    The price of a 1-liter bottle of water can buy 1,000 gallons of Denver water