The Bozeman Brief
City Commission

City Commission approves $609 million budget with rate hikes across utilities

City Commission — June 2, 2026

Bozeman's spending plan for the 2027 biennium includes a 9% water rate increase, 3% wastewater increase, and 15% stormwater increase, with key infrastructure projects including $17 million for tank rehabilitation. A commissioner raised concerns about simultaneously raising rates while drawing down fund reserves.

| Published June 3, 2026

Bozeman's City Commission approved a $609 million spending plan for the 2027 biennium on June 2, with recommended rate increases across water, wastewater, stormwater, and special assessment districts. Finance Director Melissa Hodnett presented the enterprise funds and special assessment districts, noting that operating costs have increased about 7% annually due to inflationary pressures and labor agreements. Key rate proposals include a 9% annual water rate increase (about $46 per year for typical homeowners), 3% wastewater increase, and 15% stormwater increase the first year. Commissioner Alison Sweeney expressed concern about simultaneously raising rates while drawing down fund balances, warning the city may lack flexibility for future rate pauses during economic downturns.

The commission highlighted infrastructure priorities including $17 million for Lyman Tank Rehabilitation and $10 million for a municipal groundwater project. Utilities Director Sean Coates noted Bozeman's proposed monthly water bill of $53.46 is the highest among comparable Montana cities, attributing this to exclusive surface water treatment, aggressive conservation programs, and deferred capital investment. The commission will revisit rate tiers and water conservation policies as cost-of-service analyses progress. City Manager Chuck Winn signaled he would bring a plan for community conversation on whether the city should continue fluoridation, noting Bozeman is Montana's last city adding fluoride to its water supply.

Mayor Joey Morrison read a proclamation recognizing June as Pride Month, affirming the city's commitment to dignity and equal protection for all. Jason Beatty of Queer Bozeman invited residents to participate in 33 Pride events running through June 14, highlighted by Pride in the Park at Lindley Park this Saturday featuring over 70 participating businesses and organizations. The next budget hearing is scheduled for July 9, with final adoption targeted for June 23.

budgetutilitieswater ratesinfrastructureBozeman
Free to republish. This article and its audio may be reprinted or republished for free, in whole or in part, with credit to CivicCast (The Bozeman Brief) and a link back to this page. Please don't edit the piece to imply we endorse your organization, and verify details against the official meeting recording before relying on them.