<body><div><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=0UNKI9_1GzgTVbD00" alt="https://img.particlenews.com/image.php?url=0UNKI9_1GzgTVbD00" width="1320" height="743" >What is the new cash-in-lieu of water rights fee rate in Bozeman?How much more will a typical new single-family home cost due to the fee increase?Why did Bozeman city commissioners decide to increase the water rights fee?BOZEMAN, Mont. — Bozeman city commissioners unanimously approved a major increase to the fee developers pay to help the city secure water for new growth, raising the rate for the first time since 2008.The commission voted 5-0 Tuesday night to increase the city’s cash-in-lieu of water rights fee from $6,000 to $13,050 per acre-foot. The new rate will take effect March 1, 2027.<div style="position:relative;width:100%; height:0; padding-bottom: 56.25%;"><iframe allowfullscreen src="https://www.youtube.com/embed/YFLk9746VuI?enablejsapi=1&version=3&playerapiid=ytplayer" frameborder="0" style="width:100%; height:100%;top:0; left:0; position:absolute"></iframe></div>For a typical new single-family home, the change increases the estimated water-rights cost from about $1,400 to about $3,000, or roughly $1,600 more per home. An acre-foot is about 326,000 gallons of water and can typically serve between two and five single-family homes.The fee applies to new development and is not a direct increase to existing customers’ monthly water bills.Bozeman requires new development to account for the additional water it will use. Developers can transfer water rights to the city, reduce demand through conservation measures or pay the cash-in-lieu fee for the remaining water demand. The money collected through the fee is used to help the city acquire additional water rights.Consultants hired by the city evaluated the cost of water using three approaches:What Bozeman has historically paid for water rights.The current market value of acquiring water.The estimated cost of developing new water supplies.That analysis produced a recommended range of $11,600 to $14,500 per acre-foot, with $13,050 selected as the midpoint.City staff told commissioners Bozeman has been charging too little for water rights as the cost of securing additional water has increased.Utilities Director Sean Coates said the city’s last water-share purchase at roughly the current $6,000-per-acre-foot level occurred more than six years ago. He said growth following the pandemic increased demand for water, which in turn increased its cost.“But if you think about the growth that we’ve seen, of course, coming out of the pandemic, and that’s really driven demand for water, and then when you drive the demand, that it drives the increase in costs,” Coates said.Commissioners also discussed what could happen if the cash-in-lieu program does not collect enough money to cover future water-rights purchases.“If we don’t collect basically enough to fund our water rights purchases going forward, then it’s gotta come from somewhere, right?” Coates said. “So that would essentially come from the water enterprise fund at some point in the future.”The amount of the increase was not the only issue commissioners considered.The original proposal called for the higher rate to take effect Nov. 23. The Community Development Board recommended phasing the increase in over time, and several written public comments raised similar concerns about the impact on projects already in the development process.Commissioners ultimately chose not to phase in the amount of the increase. Instead, they amended the resolution to move the effective date to March 1, 2027.The amendment passed 5-0 before commissioners unanimously approved the final resolution.The resolution calls for the city to review the fee every two years. Coates said a significant jump in growth or water demand could also trigger a more detailed analysis sooner.</div></body>

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BOZEMAN, Mont. — Bozeman city commissioners unanimously approved a major increase to the fee developers pay to help the city secure water for new growth, raising the rate for the first time since 2008. The commission voted 5-0 Tuesday night to increase the city’s cash-in-lieu of water rights fee...

Bozeman approves water rights fee increase for new development

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BOZEMAN, Mont. — Bozeman city commissioners unanimously approved a major increase to the fee developers pay to help the city secure water for new growth, r

Bozeman approves water rights fee increase for new development

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