Proposed Water Rates--FY26

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Providing safe, reliable and affordable water is a priority for City of Columbia Utilities.

The Water Utility is proposing a new water rate structure that will increase revenue 12% in Fiscal Year 2026. However, the City of Columbia expects water bills to decrease for 65% of residential customers.

Based on Stantec Consulting’s cost of service study and the American Water Works Association’s “Principles of Water Rates, Fees and Charges” manual, the Water Utility’s proposed rate structure was designed to implement a revenue increase for water utility capital improvements due to increasing costs related to operations and maintenance.

The proposed water rate structure will recover costs from users more closely with how their use impacts the system. Therefore, customers with consistent monthly water usage are expected to see their bills decrease. Additional information can be found under the Documents tab on the right side of this page.

How will my water bill be affected by this change?

Columbia residents can get an estimate as to how the proposed water rate structure would affect them. Use the calculator below to see how your rates will be affected. For information on how to use the tool, please see the Water User Calculator Manual.

The City’s utility billing portal (MyUtilityBill.CoMo.gov) includes an interactive dashboard that allows customers to track their historic water usage.

Bill breakdown

Customers will see two kinds of charges on their monthly water bills -- base charges and consumption charges. Read more to see a breakdown of these different charges and how the proposed changes will impact customers. Explanation of charges

Continued progress

City of Columbia Utilities is hard at work maintaining and upgrading aging infrastructure to ensure the City continues supplying its citizens and customers with the highest quality water and service possible. Infrastructure projects

Assistance for customers

City of Columbia Utilities customers who need utility payment assistance can contact Utility Customer Service for more information. Phone: 573.874.7380 or email: UCS@CoMo.gov. Conservation and assistance programs

The City of Columbia will hold a public hearing on the proposed 12% revenue increase for the Water Utility, at the Aug. 4 City Council meeting. The meeting starts at 7 p.m. at City Hall, 701 East Broadway.

If approved, the new water rate structure would go into effect October 1.


Members of the public may attend any open meeting. For requests for accommodations related to disability, please call 573.874.CITY (2489) or email City@CoMo.gov. In order to assist staff in making the appropriate arrangements for your accommodation, please make your request as far in advance of the posted meeting date as possible.

Providing safe, reliable and affordable water is a priority for City of Columbia Utilities.

The Water Utility is proposing a new water rate structure that will increase revenue 12% in Fiscal Year 2026. However, the City of Columbia expects water bills to decrease for 65% of residential customers.

Based on Stantec Consulting’s cost of service study and the American Water Works Association’s “Principles of Water Rates, Fees and Charges” manual, the Water Utility’s proposed rate structure was designed to implement a revenue increase for water utility capital improvements due to increasing costs related to operations and maintenance.

The proposed water rate structure will recover costs from users more closely with how their use impacts the system. Therefore, customers with consistent monthly water usage are expected to see their bills decrease. Additional information can be found under the Documents tab on the right side of this page.

How will my water bill be affected by this change?

Columbia residents can get an estimate as to how the proposed water rate structure would affect them. Use the calculator below to see how your rates will be affected. For information on how to use the tool, please see the Water User Calculator Manual.

The City’s utility billing portal (MyUtilityBill.CoMo.gov) includes an interactive dashboard that allows customers to track their historic water usage.

Bill breakdown

Customers will see two kinds of charges on their monthly water bills -- base charges and consumption charges. Read more to see a breakdown of these different charges and how the proposed changes will impact customers. Explanation of charges

Continued progress

City of Columbia Utilities is hard at work maintaining and upgrading aging infrastructure to ensure the City continues supplying its citizens and customers with the highest quality water and service possible. Infrastructure projects

Assistance for customers

City of Columbia Utilities customers who need utility payment assistance can contact Utility Customer Service for more information. Phone: 573.874.7380 or email: UCS@CoMo.gov. Conservation and assistance programs

The City of Columbia will hold a public hearing on the proposed 12% revenue increase for the Water Utility, at the Aug. 4 City Council meeting. The meeting starts at 7 p.m. at City Hall, 701 East Broadway.

If approved, the new water rate structure would go into effect October 1.


Members of the public may attend any open meeting. For requests for accommodations related to disability, please call 573.874.CITY (2489) or email City@CoMo.gov. In order to assist staff in making the appropriate arrangements for your accommodation, please make your request as far in advance of the posted meeting date as possible.

Questions

What questions do you have about the proposed rate changes?

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  • Share What is quality drinking water? How much annual water revenue is represented by a 12% water revenue increase? Please itemize the individual annual water expense increase dollar amounts that are increasing that correspond to the 12%. Is “No new personnel positions forecasted” for the 10 year period exclusive of the open positions in the water department? How many open positions are there in the water department? What is the total dollar value for the total of these positions? What type of capital investments are considered “Minimum capital investment needs are met”? For the Water Department, what expenses have been reduced by 3% to meet the City Manager’s requirement for FY26? How does this 3% reduction correspond to the Stantec Study? What is the itemized listing of water projects for the FY26 Water CIP? Which water projects and dollar amounts were transferred to the water treatment project in the spring of 2024? When will these projects and funds be replaced for those water users are still waiting for their project completion? Thank you! on Facebook Share What is quality drinking water? How much annual water revenue is represented by a 12% water revenue increase? Please itemize the individual annual water expense increase dollar amounts that are increasing that correspond to the 12%. Is “No new personnel positions forecasted” for the 10 year period exclusive of the open positions in the water department? How many open positions are there in the water department? What is the total dollar value for the total of these positions? What type of capital investments are considered “Minimum capital investment needs are met”? For the Water Department, what expenses have been reduced by 3% to meet the City Manager’s requirement for FY26? How does this 3% reduction correspond to the Stantec Study? What is the itemized listing of water projects for the FY26 Water CIP? Which water projects and dollar amounts were transferred to the water treatment project in the spring of 2024? When will these projects and funds be replaced for those water users are still waiting for their project completion? Thank you! on Twitter Share What is quality drinking water? How much annual water revenue is represented by a 12% water revenue increase? Please itemize the individual annual water expense increase dollar amounts that are increasing that correspond to the 12%. Is “No new personnel positions forecasted” for the 10 year period exclusive of the open positions in the water department? How many open positions are there in the water department? What is the total dollar value for the total of these positions? What type of capital investments are considered “Minimum capital investment needs are met”? For the Water Department, what expenses have been reduced by 3% to meet the City Manager’s requirement for FY26? How does this 3% reduction correspond to the Stantec Study? What is the itemized listing of water projects for the FY26 Water CIP? Which water projects and dollar amounts were transferred to the water treatment project in the spring of 2024? When will these projects and funds be replaced for those water users are still waiting for their project completion? Thank you! on Linkedin Email What is quality drinking water? How much annual water revenue is represented by a 12% water revenue increase? Please itemize the individual annual water expense increase dollar amounts that are increasing that correspond to the 12%. Is “No new personnel positions forecasted” for the 10 year period exclusive of the open positions in the water department? How many open positions are there in the water department? What is the total dollar value for the total of these positions? What type of capital investments are considered “Minimum capital investment needs are met”? For the Water Department, what expenses have been reduced by 3% to meet the City Manager’s requirement for FY26? How does this 3% reduction correspond to the Stantec Study? What is the itemized listing of water projects for the FY26 Water CIP? Which water projects and dollar amounts were transferred to the water treatment project in the spring of 2024? When will these projects and funds be replaced for those water users are still waiting for their project completion? Thank you! link

    What is quality drinking water? How much annual water revenue is represented by a 12% water revenue increase? Please itemize the individual annual water expense increase dollar amounts that are increasing that correspond to the 12%. Is “No new personnel positions forecasted” for the 10 year period exclusive of the open positions in the water department? How many open positions are there in the water department? What is the total dollar value for the total of these positions? What type of capital investments are considered “Minimum capital investment needs are met”? For the Water Department, what expenses have been reduced by 3% to meet the City Manager’s requirement for FY26? How does this 3% reduction correspond to the Stantec Study? What is the itemized listing of water projects for the FY26 Water CIP? Which water projects and dollar amounts were transferred to the water treatment project in the spring of 2024? When will these projects and funds be replaced for those water users are still waiting for their project completion? Thank you!

    John T. Conway, PE asked about 2 months ago

    What is quality drinking water?

    City of Columbia Utilities tests its water more frequently and more thoroughly than is required by law to ensure clean, safe drinking water is available to customers. Columbia’s drinking water meets or exceeds all quality standards set by the Federal Environmental Protection Agency and the Missouri Department of Natural Resources.

    How much annual water revenue is represented by a 12% water revenue increase? Please itemize the individual annual water expense increase dollar amounts that are increasing that correspond to the 12%.

    The 12% revenue increase should be approximately $3.6 million. The purpose of the revenue increase is to continue to meet the cash reserve requirement and debt service coverage. A significant increase in personnel (salary/benefits) expenses have occurred over the past few years that have impacted the Utility's operating budget, along with overall inflation increases for supplies and materials and contractual services.

    • April 2021 - 2.10% across the board (ATB) increase
    • October 2021 - 3% ATB and incremental move to midpoint for eligible employees (40% for 3 years in classification; 70% for 4 years in classification and full move to midpoint for 5 years in classification
    • Mid FY 2022 - 3% ATB
    • FY 2023 - 4% ATB
    • Mid FY 2023 - 4% ATB
    • FY 2024 - 2% ATB
    • FY 2025 - 3.5% ATB

    Is “No new personnel positions forecasted” for the 10 year period exclusive of the open positions in the water department? How many open positions are there in the water department? What is the total dollar value for the total of these positions?

    New personnel positions were forecasted in the cost of service study. The following was provided to Stantec:

    FY 2026 Water Treatment Plant:

    • (1) Utility Maintenance Mechanic III - ~$74,100 (salary/benefits)

    • (1) Water Treatment Plant Operator II - ~$68,000 (salary/benefits)

    FY 2027 Water Treatment Plant:

    • (1) Utility Maintenance Mechanic III - ~$74,100 (salary/benefits)

    • (1) Utility Maintenance Mechanic II - ~$68,000 (salary/benefits)

    • (1) Water Treatment Plant Operator II - ~$68,000 (salary/benefits)

    FY 2028 Water Distribution:

    • (1) Utility Locator II - ~$82,300 (salary/benefits)

    • (1) Water Distribution Operator II - ~$68,000 (salary/benefits)

    FY 2029 Water Distribution:

    • (1) Water Distribution Operator II - ~$68,000 (salary/benefits)

    • (2) Water Distribution Operator I - ~$120,400 (salary/benefits)

    There are currently 10 vacancies in Water Utilities.

    What type of capital investments are considered “Minimum capital investment needs are met”?

    Staff evaluates projects to determine what can feasibly be designed and constructed within any given year. The Utility should not be restricting funds for projects that it knows it can’t begin/complete within a reasonable time.

    For the Water Department, what expenses have been reduced by 3% to meet the City Manager’s requirement for FY26?

    None.

    How does this 3% reduction correspond to the Stantec Study?

    No reductions were included.

    What is the itemized listing of water projects for the FY26 Water CIP? Which water projects and dollar amounts were transferred to the water treatment project in the spring of 2024?

    The FY 2026 Capital Improvement Projects were presented to the WLAB during its April 2025 and May 2025 monthly meetings. The agendas with supporting documentation can be found on the City website at como.gov/boards/water-and-light-advisory-board

    When will these projects and funds be replaced for those water users are still waiting for their project completion?

    Once the Water Treatment Plant project is complete then staff will evaluate any remaining funds to determine how to move forward with the projects that were placed on hold.

  • Share You increased the base charge by $2.00 per month on Oct. 1, 2023 to repay only the debt service for the issuance of the water revenue bonds issued later in November, 2023. Stantec did not back out the $2.00 in the base charge in the Water Cost of Service Study since debt service is no longer considered in the Base Charge calculation!! on Facebook Share You increased the base charge by $2.00 per month on Oct. 1, 2023 to repay only the debt service for the issuance of the water revenue bonds issued later in November, 2023. Stantec did not back out the $2.00 in the base charge in the Water Cost of Service Study since debt service is no longer considered in the Base Charge calculation!! on Twitter Share You increased the base charge by $2.00 per month on Oct. 1, 2023 to repay only the debt service for the issuance of the water revenue bonds issued later in November, 2023. Stantec did not back out the $2.00 in the base charge in the Water Cost of Service Study since debt service is no longer considered in the Base Charge calculation!! on Linkedin Email You increased the base charge by $2.00 per month on Oct. 1, 2023 to repay only the debt service for the issuance of the water revenue bonds issued later in November, 2023. Stantec did not back out the $2.00 in the base charge in the Water Cost of Service Study since debt service is no longer considered in the Base Charge calculation!! link

    You increased the base charge by $2.00 per month on Oct. 1, 2023 to repay only the debt service for the issuance of the water revenue bonds issued later in November, 2023. Stantec did not back out the $2.00 in the base charge in the Water Cost of Service Study since debt service is no longer considered in the Base Charge calculation!!

    John T. Conway, PE asked about 2 months ago

    Stantec used a functional approach in setting rates for the base charges in that they assigned a portion of average day cost, all meter cost, and all customer cost as the basis for the base charges. A portion of annual debt service is recovered from the base charges in the average day function and then the remainder of debt service is recovered in the volume rates. The rationale being that the investments made from debt support a number of different functions including average day, max day, and peak hour.

Page last updated: 28 Jul 2025, 08:56 AM