The price of the gas that heats a house in Granby is set by the mayor and the aldermen. In most of Missouri that job belongs to a utility company and a state commission. Granby's city code makes them the ex-officio commissioners of the "municipal gas works."
That detail matters more than it sounds. When you buy a house in Granby, the gas, water and sewer accounts all start at the same counter, at Granby City Hall, 414 N. Main St., open 8 to 5 on weekdays. The rules at that counter come from city ordinances. They're tied to the city's own bond payments and to a water system that is being rebuilt as you read this. The first rule a buyer runs into is the deposit, and it depends on how the house will be used.
The Deposit Follows the Occupancy, Not the House
Granby's code sets gas deposits by type of occupancy. Water deposits are the same for every type of property.
| How the property is occupied | Gas deposit | Water deposit |
|---|---|---|
| Owner-occupied | $100 | $150 |
| Rental property or contract for deed | $250 | $150 |
| Owner-occupied mobile or manufactured home | $250 | $150 |
| Pasture meter | not listed | $150 |
Two things in that table catch people off guard.
First, the code lists a contract-for-deed sale with rentals, not with owner-occupied homes. If you're buying or selling on a contract for deed, which is common for small investors and for buyers who don't use a traditional mortgage, the gas deposit is $250, not $100.
Second, the gas deposit is higher for an owner-occupied manufactured home than for an owner-occupied site-built house, while the water deposit stays at $150 either way. Under the water ordinance, the applicant also has to show proof of ownership or a lease, along with identification. That means a buyer's settlement statement, or an investor's signed lease, is part of getting the water turned on.
The city utilities clerk handles opening, transferring and closing accounts.
Who Sets the Gas Rate, and What It Has to Pay For
The Missouri Public Service Commission regulates five investor-owned natural gas companies in the state. According to the PSC's own summary of what it regulates, it "oversees safety for city-owned gas systems but does not set their rates." Granby's gas rate is set by city ordinance, and the code spells out what that rate has to cover:
"...such rates, fees and charges for gas and gas service ... as will produce revenues sufficient to provide funds to pay the cost of the operation and maintenance of said system and to pay the principal of and interest on its natural gas system revenue bonds as and when the same become due and to create and maintain reasonable reserves."
That language comes from Section 725.110 of Granby's code. In plain terms, the gas bill pays for the pipes, the crew and the city's gas debt. When the board changes the rate, it does so by ordinance at a public meeting.
The board has used that power twice in two years. Ordinance 947, dated Feb. 23, 2025, set a new gas schedule starting with the January 2025 billing. That 2025 schedule has two parts:
- A $17.50 monthly meter charge for residential meters
- $11.65 for each 1,000 cubic feet of gas, so the first 1,000 cubic feet comes to $29.15 including the meter charge
The shape of the bill is what matters here. Under that schedule, the meter charge is billed every month, even in July with the furnace off, and every additional 1,000 cubic feet adds the same flat amount. Non-residential meters paid a $100 base fee.
Then, on Jan. 22, 2026, the aldermen voted 4-0 to pass Ordinance 971, a 2% gas rate increase that took effect that day. So the 2025 figures above are the starting point, not the amount on a 2026 bill. The clerk at City Hall, 417-472-6556, has the current schedule that will apply to your first bill.
Bills Come Due on a City Calendar
Since the city does the billing, the deadlines are set by ordinance too. Gas and water bills are due by the 15th of the month after the gas or water was used. After that, the code adds a 10% delinquency charge.
Reconnection is where the rules matter for sellers, especially anyone holding a vacant house or settling an estate. If gas service is disconnected for any reason and later reconnected for the same customer at the same location, the code charges $75. On top of that, the customer pays a deposit of $200 or the total of the property's two highest monthly gas bills from the previous year, whichever is higher. Water reconnection anywhere in the city costs $25 plus a $150 deposit.
For a house that has been heated all winter, two of last year's January and February gas bills can come to more than $200. That's worth knowing before you shut off a vacant house for the season.
The Same Bill Is Paying for New Pipe
The gas rate pays down gas bonds. The water side of the bill sits next to the largest public works project Granby has taken on in years.
Ordinance 946 set the 2025 water schedule, starting with the February 2025 billing. It had a $24.14 monthly minimum covering the first 1,496 gallons, about $1.45 per 1,000 gallons after that, and about $0.72 per 1,000 above 14,962 gallons. On Jan. 8, 2026, the board passed Ordinance 969, a 2% sewer rate increase, and Ordinance 970, a 2% water rate increase. Both took effect that day. Those votes came at the same January meeting where the council awarded the tank contract.
Here's how the project behind those rates has moved:
- September 2024. The Missouri Department of Natural Resources awarded Granby a $536,000 interest-free planning and design loan toward drinking water improvements that DNR estimated at $8.9 million. DNR said the zero-interest loan would save ratepayers about $74,400.
- Jan. 7, 2026. Bids opened on a two-contract project. Contract 1 covers about 71,000 feet of new water line, up to about 600 service-line renewals, up to about 300 new meter sets and a standby generator at well #2. Contract 2 is a new 200,000-gallon elevated water tank at the same well.
- Jan. 8, 2026. The council awarded the tank contract to Gerard Tank and Steel for $1,406,000.
- Jan. 22, 2026. The council accepted the water line bid from Better by Design.
- April 2026. The city newsletter reported that both contractors had held their pre-construction conference and that equipment had arrived. Line work was set to start by the end of April and tank work in July. A groundbreaking was set for April 27 at the old water tower and caboose at Highway 60 and North Grove Street.
- July 2026. The mayor's column described the water project as "in full swing." It also announced that South Main Street, from Neosho Street to B Highway, would be repaved starting the week of Aug. 3.
KOAM reported that city leaders put the full water replacement and sewer rebuild at about $11 million. The September 2026 newsletter says the federal grant money tied to the water improvements is going through a Single Audit. It adds that the city has received the highest possible rating on its audits for several years.
For a buyer, up to 600 service-line renewals in a town of Granby's size means the line from the main to the house you're looking at may be new, or may be on the list. The utilities clerk can tell you which.
Why This Is Coming Up Now
In the same July newsletter, the mayor wrote that three builders were putting up multiple new homes in town, that individuals were adding homes as well, and that other builders were looking for lots. "So if you have empty lots, there is a demand," he wrote.
Every new house adds a gas meter and a water meter to a system the city owns and finances itself. That's why Granby's utility rules belong in your homework before you write an offer. The ordinances explain what each new account costs, what the rates are paying for, and which pipes are being replaced.
Quick Answers for Buyers and Investors
Does a contract-for-deed buyer pay the owner-occupied gas deposit?
Granby's code puts "rental property/contract for deed" in the same category, with a $250 gas deposit. Owner-occupied property is $100. The gas service article has the full text.
Can I complain to the state about Granby's gas rate?
The PSC handles safety on city-owned gas systems but does not set their rates. Rate changes in Granby go through the board of aldermen, the way the 2% gas increase did in January 2026.
Do I get my deposit back?
The code says deposits stay with the city until service ends and all bills are paid. Then the clerk refunds them.
This post is general information drawn from Granby's published code and city documents. It isn't legal, tax or financial advice, so please confirm the rules for your own purchase or contract with City Hall and the right professional.
Before a Granby house goes under contract, we're glad to help you line up the utility side: which deposit category applies, which questions to ask the utilities clerk, and how the city's water line work affects the street you're considering. Show-Me Real Estate is right here in Newton County. Schedule a Free Consultation and we'll go through it with you.
