Water Rate Adjustment
Overview of Proposed Water Rate Increase
Why the increase in rates?
The money raised from rate increases helps us continue to provide our core services to the people of Kalispell. The proposed increase provides sufficient revenues necessary to support uncontrollable inflationary costs for routine maintenance and operational services, planned capital improvement projects, and debt service coverage.
What will the rate increase pay for?
Expenses that allow us to deliver safe and reliable water. Annually we produce and supply 1.47 billion gallons of safe and reliable water for drinking, showers, cooking, irrigation, etc.
- Pipes to deliver drinking water and fire flows
- Storage facilities to provide pressure, operational and emergency capacities
- New source development (wells and tanks) to meet current and future supply demand
- Metering system to provide reliable usage and a portal to view real-time usage and leaks
- People to keep our facilities and services running 24/7
How much would a typical monthly water bill increase?
The proposed increase would begin September 1, 2023 (applied to the September usage). Below are typical bills for customers with a 3/4” meter and use 6,000 gallons per month. Differences in water usage will result in higher or lower charges. More information can be found at www.kalispell.com.
WHEN: A TIMELINE FOR WHAT TO EXPECT
Did you know.....
- Over 50% of the annual water usage is from irrigation
- In August of 2022 the peak day demand was 10.5 million gallons
- In January of 2022 the peak day demand was 2.52 million gallons
Why the increase in water rates? Additional revenue is needed to meet high inflationary costs...
In 2019 a rate study was adopted and set the current rate schedule. Since 2019, the City has been challenged with unanticipated inflationary costs for the City's operational and capital services. The 2019 rate structure did not account for the large cost increases as a result of the pandemic.
The proposed rate increase provides additional revenue to offset unanticipated inflationary operational and maintenance costs as shown in the table below.
|WATER SERVICE COST||2021-24 % INCREASE|
|Chlorine & Chemical||118%|
|Gas & Oil||14%|
|Materials - Mains||14%|
|Materials - Service Lines||67%|
|Materials - Wells/Pumps||122%|
The proposed rate increase provides additional revenue to offset unanticipated inflationary costs for planned capital projects as shown in the table below.
Elevated Tower and Wells
Existing Storage Tank Rehabilitation
Noffsinger Replacement Water Source
3rd and 4th Ave Water Replacement
2nd Ave W (North) R&R
7th Ave WN R&R