MISSOULA — Next month, the Missoula City Council will consider increasing water, sewer, and stormwater utility rates to address inflation, aging infrastructure, and loan repayments.
On Wednesday, the council scheduled a public hearing for Oct. 21 to vote on the proposed rate hikes.
If approved, wastewater rates would rise 9% annually in 2025, 2026, and 2027; water rates would increase 7% in 2025 and 8% in 2026 and 2027; and stormwater rates would go up 2% in 2025 and 3% in 2026 and 2027. These increases would impact both residential and commercial bills.
The average residential monthly utility bill would see a total increase of $4.18 in 2025, $4.92 in 2026, and $5.33 in 2027, with new rates taking effect on Jan. 1, 2025.
“We believe it’s preferable to ask for smaller, moderate rate increases every year,” said Logan McInnis, the city’s deputy public works director. “That way, we avoid shocking our customers while continuing to make ongoing investments in our system to improve reliability and resilience.”
Funds from the increased water rates would be used for replacing water mains, adding solar panels to pump facilities, hiring a utility engineer, and increasing wages. Additionally, revenue would support a program to help customers replace leaking service lines.
The city aims to replace 1% of water mains per year but currently replaces about 2.5 miles annually. This goal would help reduce water leakage rates by 50%, saving money in the long term.
Higher wastewater rates would fund sewer main replacements, treatment facility repairs, and other upgrades. Additionally, funds are needed to design and construct a new sewer main across the Clark Fork River, which is at risk of flood damage.
Additional stormwater revenue would improve discharge to the Bitterroot River and provide matching funds for grants.
The rate increases would also build water and wastewater reserves to cover debt and maintain a good bond rating. The Department of Environmental Quality’s state revolving fund program has expressed concerns about Missoula’s ability to repay its debts without these increases.
Despite these proposed hikes, Missoula’s 2023 utility rates remain the lowest among Montana’s largest cities. Even with the increases, they should stay on the lower end.
The city council last raised utility rates in 2021, setting rates for 2022, 2023, and 2024. At that time, water rates were lower than in 2011, and sewer rates hadn’t increased since 2015. Missoula created its stormwater utility in 2018, with an initial low rate followed by a rate structure in 2020.
Before the Oct. 21 public hearing, utility customers will receive a postcard in late September outlining the proposed rate increases, McInnis said.

In-depth, independent reporting on the stories impacting your community from reporters who know your town.
—
Read More Montana News