Bill would let cities ask voters to raise water service-line fee from $12 to $24; municipal official says most cities would seek $15–$18

Representative Terry Violet told the committee House Bill 2732 would permit municipalities and public water districts to ask voters to raise the annual water service-line fee cap from $12 to up to $24 to ensure local repair programs remain solvent as material and labor costs rise.

Bill Malek, city administrator for Saint Peters, described the program as an insurance-like fund the city offers to cover repairs between the meter and the dwelling face of the foundation. Malek said the program sets a typical cap (Saint Peters uses a $3,000 per-claim cap), and that copper and labor costs have roughly doubled since the program began in 2011; he said departments now cover roughly 85% of typical claims with current revenue and asked for statutory permission to raise the cap so cities need not return repeatedly to the legislature.

Malek said the higher statutory ceiling would allow local voters to choose increases (he said most communities would pursue $15–$18/year in practice even though the bill would permit up to $24). He also described procurement practices (blanket annual bids) that help control costs and said municipal utilities operate on cost-recovery rather than profit.

Opposition testimony came from a state public advocate who said many municipal programs are solvent at $12/year and warned against a blanket 100% increase without evidence from each locality; he urged municipal budget discipline and noted some programs maintain healthy reserve levels.

Committee members asked technical questions about program administration, what entities (municipal utilities, public districts) could participate, and whether increases would require a new local vote (testimony stated increases would require voter approval in the jurisdiction). The public hearing was closed; no committee vote was recorded in the transcript.