Water Rate Adjustment

Related Documents

  1. 2023 Water Rules and Regulation Amendments
  2. 2023 Water Utility Rate Notice
  3. Water Rate Handout

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.Block Image

  • 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.

Monthly Rate Increase

WHEN: A TIMELINE FOR WHAT TO EXPECT

Timeline

Did you know.....Sprinkler

  • 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%
Water Personnel22%
Gas & Oil14%
Information/Technology Services
34%
Electricity
9%
Natural Gas3%
Lab Services50%
Construction Materials43%
Fleet Services/Repairs27%
Materials - Mains14%
Materials - Service Lines67%
Materials - Wells/Pumps122%


The proposed rate increase provides additional revenue to offset unanticipated inflationary costs for planned capital projects as shown in the table below.

Type

Project Name

2019 Costs

2023 Costs

% Increase

Demand

Elevated Tower and Wells

 $    6,398,812 

 $21,895,333

242%

Rehabilitation

Existing Storage Tank Rehabilitation

 $    3,941,568 

 $14,000,000 

255%

Rehabilitation

Noffsinger Replacement Water Source

 $    1,791,131 

 $   4,246,624 

137%

Rehabilitation

3rd and 4th Ave Water Replacement

 $       939,196 

 $   2,629,121 

180%

Rehabilitation

2nd Ave W (North) R&R

 $       353,972 

 $   1,188,529 

236%

Rehabilitation

7th Ave WN R&R

 $       698,161 

 $   1,460,432 

109%