Independence proposes six-year water-rate reset and new main-renewal fee
Independence Water and Water Pollution Control Department, Missouri · Meeting date: October 19, 2026 · Published: October 20, 2026
Independence City Council received a first reading on October 19 for a revised water-rate schedule that would begin with a 12% revenue adjustment in FY2027. The plan is based on a Black & Veatch study projecting that existing water revenues will not meet utility requirements from FY2027.
Key points
- The proposed revenue adjustments are 12% in FY2027 and FY2028, 9% in FY2029 and FY2030, 7% in FY2031, and 5% in FY2032.
- For an inside-city 5/8-inch meter, the monthly customer charge would rise from $11.95 to $13.50 from January 1, 2027, while the commodity charge would increase from $3.43 to $4.02 per 100 cubic feet.
- A new monthly Water Infrastructure Fee would start at $3 for inside-city 5/8-inch meters in January 2027 and is intended to fund distribution-main renewal and replacement.
- The rate study identifies a $76.7 million water capital programme for FY2026-FY2032, while projected operating expenses rise from $29.3 million to $35.0 million.
Full report
Independence City Council has introduced a six-year water-rate programme intended to close a projected utility funding gap and create a dedicated revenue stream for replacing aging distribution mains.
Ordinance 26-104 received its first reading on October 19 and would adopt a revised schedule of water rates effective for bills dated January 1, 2027. The measure was not adopted at the meeting.
The proposal follows a 15-month independent review of the city’s Water Fund by Black & Veatch. The consultant concluded that water-service revenue under existing rates would rise only from approximately $32.9 million in FY2026 to $33.6 million in FY2032, largely through customer growth. It said those revenues would not fully meet annual requirements from FY2027.
Black & Veatch recommended water revenue adjustments of 12% in FY2027, another 12% in FY2028, 9% in FY2029 and FY2030, 7% in FY2031, and 5% in FY2032. The study ties the increases to operating costs, capital needs, debt-service obligations, reserve funding and bond-coverage requirements.
For retail customers inside the city, the proposed monthly charge for a 5/8-inch meter would increase from $11.95 to $13.50 on January 1, 2027. The volumetric charge above the 200-cubic-foot allowance would rise from $3.43 to $4.02 per 100 cubic feet. Further scheduled changes would take effect in November each year through 2031 under the proposed schedule.
A separate Water Infrastructure Fee is a central feature of the plan. The new charge would begin at $3 per month for an inside-city 5/8-inch meter in January 2027, rising to $6 by November 2030. The study says proceeds would be restricted for water-main replacement and related renewal activities, including planning, design and construction. Outside-city customers would also pay the fee, starting at $4 per month for a 5/8-inch meter.
The consultant projected a FY2026-FY2032 capital improvement programme of approximately $76.7 million, financed through available fund balances, revenue-bond proceeds and annual revenues. Operating and maintenance expenses are projected to increase from about $29.3 million in FY2026 to $35.0 million in FY2032, while annual debt service is forecast to rise from $2.5 million to $2.8 million.
The study also recommends building a 180-day operating reserve. The council’s first-reading action leaves the proposed rate schedule pending further legislative consideration.
This summary was generated by AI based on the source document and may contain errors.
Source: Regular City Council Meeting, Independence Water and Water Pollution Control Department