Utility Rates

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Missoula Urban Water Life Cycle Graphic

Background

Missoula's Water, Wastewater, and Stormwater utilities provide customers with safe drinking water, reliable services, and protection for our environment. For us to address rising costs while continuing to invest in the people, equipment, and infrastructure needed to provide these essential services, we periodically adjust our rates to meet our projected expenses. Public Works & Mobility introduced new rates, shown below, during the FY25 Budget session. City Council adopted that budget in August, so we are moving forward with the formal process to set utility rates for the next three years.

The new utility rates were formally presented to City Council during the Public Works Committee meeting on September 11, 2024, and a public hearing is scheduled for October 21. We invite utility customers to review the information on this page to learn why additional investment is needed. Please ask us questions by using the Questions tab at the bottom of this page.


Proposal and Explanation

For less than the cost of a typical monthly bill for Internet service, Missoula’s utilities provide our customers with high quality drinking water as well as wastewater and stormwater services that protect the water bodies thousands of Missoulians recreate in every year.

Inflation

Our dedicated utility professionals strive to keep our rates as low as possible, but many cost increases—like those for power, materials, and contract bid prices—are beyond our control. We need to increase our utility rates so that we can continue to:

  • provide the same level of service our customers rely on,
  • keep up with state and federal regulations, and
  • increase investments to improve and maintain our aging infrastructure.

Historically Low Rates

Missoula’s combined utility rates continue to be nearly the lowest in Montana at $59.04 according to AE2S’s 2023 Annual Rate Survey. The first chart below shows the combined 2023 utility rates for several Montana cities.

The second chart below shows current rates for major Montana cities along with Missoula’s projected increases for FY25 through FY27. It should be noted that only Kalispell has adopted multiple years of rate increases through FY27, but it’s very likely that other communities will also need to increase their rates over that time. Even without other communities raising their rates, Missoula’s proposed combined rates through FY27 would still be below the average of the other large cities in Montana.

Modest Request

The proposed rate increases would take effect over a three-year period to minimize the impact on our customers and allow timely investment in our utility infrastructure. The total proposed increase for 2025 would add $4.33 to the average residential customer’s total monthly bill for water, wastewater, and stormwater services.

This proposed rate increase would be effective on January 1, 2025, with additional increases occurring in 2026 and 2027, as shown in the tables below.


2023 Combined Residential Utility Rates for Other Montana Cities and Towns

As the chart below shows, Missoula's combined monthly rates for water, wastewater, and stormwater services are nearly the lowest in Montana. (AE2S/Nexus takes annual utility rate surveys from around the region and publishes the results in the Annual Utility Rate Survey. The chart shown here is from the 2023 survey.)


Before proposed additional system investment:


After proposed additional system investment:

Even after our proposed additional investment, Missoula's 2027 combined residential utility rates will still be below the average of the other large cities in Montana.

*Note: For comparison purposes, AE2S uses 6,000 gallons of residential water usage and wastewater flow to compare rates in different cities. Missoula's average water customer uses slightly less, which is reflected in the average monthly bills shown in the table below.


The Bottom Line

The following tables show the proposed increases for residential and commercial customers:

Residential Monthly Rates

The table below shows current estimated average monthly residential water, wastewater, and stormwater bills as well as projected average monthly bills for the next three years.


CurrentProposed 2025Proposed 2026Proposed 2027
Water$35.867% = $2.51$38.378% = $3.06$41.438% = $3.31$44.74
Wastewater$18.979% = $1.71$20.689% = $1.86$22.549% = $2.03$24.57
Stormwater$5.382% = $0.11$5.493% = $0.16$5.653% = $0.17$5.82
TOTAL$60.21$4.33$64.54$5.08$69.62$5.51$75.13


Commercial Rates

Commercial rates have many variables, so please see the current Utility Rate Schedule for more information.


Proposed 2025Proposed 2026Proposed 2027
Water7%8%8%
Wastewater9%9%9%
Stormwater2%3%3%




Click on the links below to see additional information for each utility.


Background

Missoula's Water, Wastewater, and Stormwater utilities provide customers with safe drinking water, reliable services, and protection for our environment. For us to address rising costs while continuing to invest in the people, equipment, and infrastructure needed to provide these essential services, we periodically adjust our rates to meet our projected expenses. Public Works & Mobility introduced new rates, shown below, during the FY25 Budget session. City Council adopted that budget in August, so we are moving forward with the formal process to set utility rates for the next three years.

The new utility rates were formally presented to City Council during the Public Works Committee meeting on September 11, 2024, and a public hearing is scheduled for October 21. We invite utility customers to review the information on this page to learn why additional investment is needed. Please ask us questions by using the Questions tab at the bottom of this page.


Proposal and Explanation

For less than the cost of a typical monthly bill for Internet service, Missoula’s utilities provide our customers with high quality drinking water as well as wastewater and stormwater services that protect the water bodies thousands of Missoulians recreate in every year.

Inflation

Our dedicated utility professionals strive to keep our rates as low as possible, but many cost increases—like those for power, materials, and contract bid prices—are beyond our control. We need to increase our utility rates so that we can continue to:

  • provide the same level of service our customers rely on,
  • keep up with state and federal regulations, and
  • increase investments to improve and maintain our aging infrastructure.

Historically Low Rates

Missoula’s combined utility rates continue to be nearly the lowest in Montana at $59.04 according to AE2S’s 2023 Annual Rate Survey. The first chart below shows the combined 2023 utility rates for several Montana cities.

The second chart below shows current rates for major Montana cities along with Missoula’s projected increases for FY25 through FY27. It should be noted that only Kalispell has adopted multiple years of rate increases through FY27, but it’s very likely that other communities will also need to increase their rates over that time. Even without other communities raising their rates, Missoula’s proposed combined rates through FY27 would still be below the average of the other large cities in Montana.

Modest Request

The proposed rate increases would take effect over a three-year period to minimize the impact on our customers and allow timely investment in our utility infrastructure. The total proposed increase for 2025 would add $4.33 to the average residential customer’s total monthly bill for water, wastewater, and stormwater services.

This proposed rate increase would be effective on January 1, 2025, with additional increases occurring in 2026 and 2027, as shown in the tables below.


2023 Combined Residential Utility Rates for Other Montana Cities and Towns

As the chart below shows, Missoula's combined monthly rates for water, wastewater, and stormwater services are nearly the lowest in Montana. (AE2S/Nexus takes annual utility rate surveys from around the region and publishes the results in the Annual Utility Rate Survey. The chart shown here is from the 2023 survey.)


Before proposed additional system investment:


After proposed additional system investment:

Even after our proposed additional investment, Missoula's 2027 combined residential utility rates will still be below the average of the other large cities in Montana.

*Note: For comparison purposes, AE2S uses 6,000 gallons of residential water usage and wastewater flow to compare rates in different cities. Missoula's average water customer uses slightly less, which is reflected in the average monthly bills shown in the table below.


The Bottom Line

The following tables show the proposed increases for residential and commercial customers:

Residential Monthly Rates

The table below shows current estimated average monthly residential water, wastewater, and stormwater bills as well as projected average monthly bills for the next three years.


CurrentProposed 2025Proposed 2026Proposed 2027
Water$35.867% = $2.51$38.378% = $3.06$41.438% = $3.31$44.74
Wastewater$18.979% = $1.71$20.689% = $1.86$22.549% = $2.03$24.57
Stormwater$5.382% = $0.11$5.493% = $0.16$5.653% = $0.17$5.82
TOTAL$60.21$4.33$64.54$5.08$69.62$5.51$75.13


Commercial Rates

Commercial rates have many variables, so please see the current Utility Rate Schedule for more information.


Proposed 2025Proposed 2026Proposed 2027
Water7%8%8%
Wastewater9%9%9%
Stormwater2%3%3%




Click on the links below to see additional information for each utility.


Questions

Please ask us a question about the proposed rates.

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  • Share could you please publish 2025 rates in the same form as the last 2 years? metered and non metered etc on Facebook Share could you please publish 2025 rates in the same form as the last 2 years? metered and non metered etc on Twitter Share could you please publish 2025 rates in the same form as the last 2 years? metered and non metered etc on Linkedin Email could you please publish 2025 rates in the same form as the last 2 years? metered and non metered etc link

    could you please publish 2025 rates in the same form as the last 2 years? metered and non metered etc

    dwwilliams asked 4 months ago

    Thank you for the request! We are working on it and will have it posted by the end of day tomorrow.

  • Share I understand costs go up, however with the City of Missoula taking over the utility we were promised that one of the benefits would be low rates. Looking at this chart when you are done raising rates, we will no longer be the lowest. Can you show that all of the money collected is going back to run the system? How about slowing the rate of improvements to fit within your current revenue. With the constant increases to taxes by the City I believe you have to balance other increases. on Facebook Share I understand costs go up, however with the City of Missoula taking over the utility we were promised that one of the benefits would be low rates. Looking at this chart when you are done raising rates, we will no longer be the lowest. Can you show that all of the money collected is going back to run the system? How about slowing the rate of improvements to fit within your current revenue. With the constant increases to taxes by the City I believe you have to balance other increases. on Twitter Share I understand costs go up, however with the City of Missoula taking over the utility we were promised that one of the benefits would be low rates. Looking at this chart when you are done raising rates, we will no longer be the lowest. Can you show that all of the money collected is going back to run the system? How about slowing the rate of improvements to fit within your current revenue. With the constant increases to taxes by the City I believe you have to balance other increases. on Linkedin Email I understand costs go up, however with the City of Missoula taking over the utility we were promised that one of the benefits would be low rates. Looking at this chart when you are done raising rates, we will no longer be the lowest. Can you show that all of the money collected is going back to run the system? How about slowing the rate of improvements to fit within your current revenue. With the constant increases to taxes by the City I believe you have to balance other increases. link

    I understand costs go up, however with the City of Missoula taking over the utility we were promised that one of the benefits would be low rates. Looking at this chart when you are done raising rates, we will no longer be the lowest. Can you show that all of the money collected is going back to run the system? How about slowing the rate of improvements to fit within your current revenue. With the constant increases to taxes by the City I believe you have to balance other increases.

    Jason74 asked 7 months ago

    Jason74,

    We appreciate your interest in our Utility Rate request. Upon acquiring the water system, the City made good on its promise to not raise rates for 4 years. We can also say confidently that our rates are lower than they would have been under continued private ownership. The City took over a system that was largely neglected for many years, and it needed significant capital investment in order to bring it up to a reasonable level of service. For instance, we were leaking well over half of the water we pumped, back into the ground. The investments we have made have already started to show great results in terms of reduced leakage. Without a rate increase, we will have to cut staff and/or reduce other maintenance and eliminate all capital spending. That would just lead us back to high leakage rates and neglected infrastructure. As an enterprise fund, the money we charge customers stays within the utility except for a little less than 7% administrative transfer to pay for central services we receive (IT, finance, etc.). Having said all that, we try very hard to keep our rates reasonable. Even if other cities don’t raise their rates (which isn’t likely to be the case), our combined utility rates will still be well below the average of the other Montana cities.

Page last updated: 22 Oct 2024, 11:19 AM