Bolivar water rates could more than double next year. Here's what to know

Liberty Utilities, which operates 25 water systems and nine wastewater systems in Missouri, is proposing a rate increase for both services that could affect customers throughout the Ozark. Customers in Bolivar could see their water bills more than double.

Providing water service to roughly 12,100 customers and sewer service to almost 5,000 customers, the utility serves 13 counties across the state including Christian, Taney, Stone, Polk, Lawrence, Barry and McDonald. According to Liberty's website, most of the systems the utility services have not seen updated rates in six years or longer.

The Liberty fact sheet on the rate increases notes the average residential customer using 5,000 gallons of water per month would see about a $34 increase on their bill and the average residential wastewater customer an average increase of $27 per month.

An initial posting of a bill impact chart on the Liberty website had listed Bolivar as having one of the highest increases — with a possible 142% increase to its current water rates, going from the current $36.67 to $88.94 per month. Kelli Price, director of communications and marketing for Liberty Utilities Central Region, said via email after receiving questions from the News-Leader regarding the larger Bolivar rate increase that the chart's information for Bolivar was incorrect and has been corrected and re-uploaded to the website.

The new chart still includes a 132% increase to Bolivar's water rates, though it now notes the current rate to be $29.23 for the average customer, which would increase to $67.84 per month. The dollar amount increase no longer tops the charts in comparison to other areas the utility serves.

Bolivar and Liberty Utilities

Those in Bolivar have been using Liberty for water and sewer for only a couple of years. Voters gave approval in April 2020 to a plan for the city to sell its water and wastewater systems to Liberty. Effective February 2022, approximately 4,700 customers were switched to Liberty rather than being served by the city's utility.

According to the city's informational material regarding the ballot question, Missouri Department of Natural Resources and the U.S. Environmental Protection Agency imposed regulations on Bolivar that would require wastewater system upgrades in order to improve water quality in Piper Creek. In posing the question of sale to voters, the city noted that selling to Liberty, which already provided electricity in the city, would make these upgrades faster and likely cheaper for residents, spreading the cost across more ratepayers.

While the concerns were mainly related to the wastewater system, both systems were subject to the sale because they are connected. In 2020, the city projected it would take a 38% sewer rate increase for the city to take care of the required updates.

Lucas Roberts, a long-time resident of Bolivar, said this number scared a lot of people, and with hopes of Liberty's increase being much lower than this, voters approved the sale. For the actual wastewater rates in Liberty's proposal, Bolivar would see the smallest impact, at most an 6.3% increase.

But the water rate increase is where residents like Roberts were the most concerned, calling it "extreme" after seeing the initial numbers in a local newspaper.

"The general consensus has just been outrage so far," Roberts said. "I think that it really digs into people's budgets, which have already been stressed by rising costs for food and things."

Price said in an emailed statement that the inflation has resulted in increased costs for the reliability improvements planned and increased costs associated with property taxes, wages and salaries and other items.

More than 170 comments from Bolivar residents submitted to the Missouri Public Service Commission (PSC) as of Tuesday afternoon share Roberts's sentiments. Many set off alarm bells, noting hardships those in the community already face financially and how the increase will only add to the burden, particularly for those on a fixed income. Others said they felt betrayed based on the information shared prior to the election and the increase proposed now.

According to the 2022 American Community Survey 5-Year Estimates, the poverty rate in Bolivar is almost 22%.

Next steps on Bolivar water, wastewater rates

This proposed increase is far from final. In order to be approved, Liberty's request must go through the PSC. If the rates were approved, they would go into effect in February 2025.

While the deadline for intervention is Thursday, April 4, Kevin Kelly, PSC public information administrator, said this is for official parties interested in intervening, not the general public. The general public is represented through the Office of Public Counsel in all PSC proceedings.

By the end of the month, the PSC will issue an order for a proceedings schedule. This will include local public hearings where residents will have the opportunity to voice their concerns. Comments can still be submitted, whether about the rates or service experiences, any time to the commission.

Kelly said the PSC will make its decision within 11 months after thoroughly reviewing all information and evidence submitted by all parties, which could include demographic information regarding feasibility of a sharp rate increase.

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The proposal also includes consolidating Liberty's 15 water tariff areas into two and it's five wastewater areas into two. According to the Liberty fact sheet on the increase, the additional water revenues of approximately $7.99 million and additional annual sewer revenues of approximately $75,180 would support backup generators to reduce service disruptions, well monitoring equipment, replacement of aging water mains and distribution pipes and installation of smart meters among other updates.

Liberty offers flexible payment plans and offers programs for those on a fixed income.

Marta Mieze covers local government at the News-Leader. Have feedback, tips or story ideas? Contact her at mmieze@news-leader.com.

This article originally appeared on Springfield News-Leader: Liberty Utilities proposes water, sewer rate increases for SW Missouri