Independence approves six-year water-rate reset and main-renewal fee
Independence Water and Water Pollution Control Department, Missouri · Meeting date: November 2, 2026 · Published: November 3, 2026
Independence City Council unanimously adopted a revised water-rate schedule that starts on January 1, 2027 and extends through 2032. The package is intended to close a projected funding gap, support a $76.7 million capital programme and establish a dedicated source of funding for water-main replacement.
Key points
- The first rate change takes effect on bills dated January 1, 2027, followed by scheduled adjustments through November 2031.
- For a typical inside-city residential customer using 6 ccf per month, the projected FY2027 bill rises from $28.53 to $35.58, including the new $3 monthly infrastructure fee.
- The Black & Veatch study identified a $76.7 million FY2026-FY2032 capital programme, financed mainly from cash revenues and $7.1 million of revenue-bond proceeds.
- The utility's existing rates have been in place since October 2016; the study found they would not cover projected annual requirements from FY2027.
Full report
Independence, Missouri, has approved a six-year revision of its water-rate schedule, pairing repeated increases in service and consumption charges with a new dedicated infrastructure fee intended to fund distribution-main renewal.
City Council approved Ordinance 26-104 unanimously on November 2. The first changes apply to bills dated January 1, 2027, with further scheduled adjustments each November through 2031.
For an inside-city customer with a 5/8-inch meter, the monthly minimum charge will rise from $11.95 to $13.50 in January 2027, while the commodity charge for use above the included 200 cubic feet will increase from $3.43 to $4.02 per 100 cubic feet. The package also introduces a $3 monthly water infrastructure fee for that meter size. The utility’s rate study puts the resulting monthly bill for an inside-city residential customer using 6 ccf at $35.58, compared with $28.53 under the previous schedule. That estimate includes the public-fire charge and the new infrastructure fee.
The infrastructure fee applies to inside- and outside-city customers, with charges scaled by meter size. For inside-city customers, the fee begins at $3 per month for a 5/8-inch meter and $90 for 8- and 12-inch meters in FY2027. By FY2032, those respective charges are scheduled to reach $6 and $179. Outside-city 5/8-inch customers will pay $4 monthly initially, rising to $7 by FY2032.
Black & Veatch’s 15-month rate study concluded that existing water-service revenues would rise only modestly, from about $32.9 million in FY2026 to $33.6 million in FY2032, while operating costs, capital requirements, debt service and reserve needs rise more quickly. The study projects operating expenses increasing from $29.3 million to $35.0 million over the same period.
The approved rate path reflects recommended annual revenue adjustments of 12% in FY2027 and FY2028, 9% in FY2029 and FY2030, 7% in FY2031 and 5% in FY2032. The schedule changes charges across retail, wholesale and large-user classes. Wholesale commodity rates, for example, rise from $1.55 per 100 cubic feet under the former schedule to $1.58 in FY2027 and $2.44 in FY2032.
The financial plan incorporates a $76.7 million capital improvement programme for FY2026-FY2032. It includes source-of-supply, distribution-main, transmission-main, treatment, meter-and-service and general-plant work. The plan identifies $69.6 million of cash financing and $7.1 million of revenue-bond proceeds for the programme.
The new infrastructure fee is specifically intended to create a predictable funding source for renewal and replacement of ageing water distribution mains, including planning, design and construction. The study said the dedicated charge would reduce reliance on debt and one-time funding for routine main replacement.
Independence’s previous water rates took effect in October 2016. The city serves treated water to retail customers within an approximately 78-square-mile area and provides treatment and transmission services to 12 wholesale customers.
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