The Fort Collins-Loveland Water District is moving forward with a rate hike in the new year. The water district, which serves more than 65,000 people every day, will start charging an additional 30% a month for existing residential users while adding a higher price tag for new taps in new developments.

Though the water district has been advertising its plans for some time now, some residents have taken to social media to express their frustrations about what they believe to be a sudden and sharp spike in prices.

"After two years of rate studies, planning, and evaluation we have come to a point where the infrastructure maintenance costs that we are experiencing have to be covered somehow," said Chris Pletcher, general manager of the water district. "And the way we have to do that is by increasing rates."

The average consumer in the water district is expected to see their monthly water bill jump by about $14, from $49 to $63.

Pletcher said the decision for rate increases was made by the board after a study showed the district needed to build out more water resources, obtain more water rights, and tend to the existing aging water system.

"We are looking at hundreds of millions of dollars to serve the next generation of customers," Pletcher said.

When CBS News Colorado's Dillon Thomas asked how much of the problem is caused by growth and how much is due to the aging infrastructure, Pletcher said, "It is about 50/50."

Charges vary between the categories of users, such as irrigation, residential, or commercial. Depending on the category a user falls under, the price of the water and rate increases vary.

The water district is also increasing the cost of obtaining a new tap into the system in newly built communities. For example, a new tap that costs $17,000 in 2024 is expected to cost around $27,000 in 2025.

The new rate increases are set to go into effect on Jan. 1, 2026.

Some frustrated community members suggested the rate increases should be more gradual over the years while others said their annual pay raises are not enough to offset the new pricing.

Pletcher said the five municipalities his system serves are continuously growing, especially between Fort Collins and Loveland. That growth and the need to update existing infrastructure forced the district's hand to increase rates, he said.

Pletcher said the problem isn't unique to this water district.

"It is an issue related to a limited supply of water in the West and the increasing cost to obtain that water. Our quality of life and geography make it an attractive place to live. There is a demand to live here that exceeds the easy resources to supply that demand with water."

Netizens on social media have suggested that communities cut off the number of building permits they are issuing, allowing water districts to focus their funding on existing customers without as many rate increases.

Pletcher said those decisions are left predominantly to the municipalities. He noted the district's service area is only 40% built, meaning there is likely much more growth to come.

He said the increase in cost for a new tap will predominantly fund the purchase of more water rights while also building out the system. On the other hand, the increased fees on existing customers are expected to help offset the costs of maintaining the existing system while also covering staff salaries and other regular costs.