Denver Water's long-term debt rose from US$463.6 million in FY 2016 to US$1,685.2 million in FY 2025, an increase of 264%. Over the same period, operating revenues rose 42%, from US$284.5 million to US$402.7 million. Debt has grown about six times faster than revenue.
Where the debt sits
At the end of FY 2025, water revenue bonds made up US$1,473.1 million of total outstanding debt of US$1,685.2 million: 87.4%. Total debt equalled 3.01 times gross revenues of US$527.3 million, or US$1,273 for each person served. The largest single-year rise among the years reported came in FY 2021, when debt went from US$725.1 million to US$1,049.7 million.
The market is not worried
Moody's and S&P affirmed Aaa and AAA ratings in 2024, with stable outlooks. When Denver Water sold green bonds in October 2024, it drew US$1.7 billion of orders from 78 potential buyers for an offering of US$254 million, and closed with net proceeds of US$295 million.
Why it matters now
Revenue bonds tie debt service directly to water sales. That is a strength in normal years and a pressure point in a drought: Denver Water's 2026 Stage 1 drought targets a 20% cut in demand through April 30, 2027.
How much room the drought leaves, what the capital plan implies for future rates, and which risks matter most to Denver Water's finances are examined in the second edition of the report. The full report, Utility Financial Structure and Risk: Denver Water, is available for USD 499 at https://ourfuturewaterintelligence.com/reports/utility-financial-structure-and-risk-denver-water. For a free overview, read the Denver Water Utility Snapshot at https://ourfuturewaterintelligence.com/utilities/denver-water.