City officials make concessions on increasing water and sewer rates

In a somewhat predictable move, Libby City Council decided to withdraw a proposed water and sewer rate increase at its April 15 meeting.

The rate increase plan proposed by City Administrator Sam Sikes, Mayor Peggy Williams and aldermen at the March 4 City Council meeting was met with much criticism.

The City Council chamber was standing room only during Monday’s meeting as residents and business owners reiterated their concerns about the price hikes, which many said would stifle further business growth and potentially put people off the streets.

The committee will hold a work session to discuss the issue on Monday, April 29, at 6 p.m.

Councilor Christine Smith made a motion to place the rate increase as old business and into the work session so that we can consider the public’s questions and comments.

City officials argued for the water rate increase to maintain and replace old and aging infrastructure, including water mains and wastewater treatment plants.

But those questioning the rate hike wonder why the city isn’t pursuing grants or loans to reduce costs.

Maureen Stevenson said Jon Testor received $42 million for wastewater infrastructure and Kalispell received $11 million. Why can’t we get some money?

U.S. Senator Jon Tester today announced that the Environmental Protection Agency (EPA) will provide $63,041,000 to Montana communities, according to a 2021 press release from Testers’ Office of the Bipartisan Infrastructure Investment and Jobs Act of funds to invest in critical wastewater and drinking water infrastructure projects.

According to the Daily Inter Lake newspaper on November 19, 2023, the Evergreen Water and Sewer District received $11 million for infrastructure upgrades.

The region’s general manager, Cindy Murray, said of the series of projects due to be completed by the end of 2025, they were huge.

The district serves an area of ​​approximately 8 square miles and a population of approximately 8,500 people. It is the largest water and sewer district in the state.

City resident John Bebee said Kalispell got $1 million to build gutters! What we need is vital. Come help and fight together.

Beebe was referring to a project in Kalispell to replace concrete pipes in the main main to the city’s wastewater treatment plant.

According to Daily Inter Lake, the $1.7 million project is funded in part with federal funds. The city was allocated $347,957 for the program under the American Rescue Plan Act signed into law in 2021 by President Joe Biden.

Resident Jennifer Nelson spoke of the importance of what the city is trying to do.

I know you get a lot of criticism; Nelson said it’s difficult when you have to balance a budget. It’s expired and I’m grateful you didn’t throw the can down the road.

But it needs to be fair. I was surprised to hear that not every family paid their share.

Nelson also said the $3.12 sewer fee increase passed in 2020 needs to be honored. According to the adopted resolution, it will be valid until 2025.

Mayor Peggy Williams said in a statement that the city has and will continue to seek state and federal grants for capital water and sewer projects.

When ARPA is allocated by the state, the funds are distributed in multiple phases based on population and competition, Williams said. The city received $712,000 in direct grants and $573,492 in additional infrastructure grants. The city applied for a competitive grant but did not receive the funds. ARPA funds are used to replace radios for Libby Police Department officers and patrol cars, upgrade the Cabinet Heights water main, install new fencing at the sewer plant and will help pay for the replacement of the wastewater plant controller and several sewer mains.

Williams also said the city currently has $2.6 million in grants through RRGL, DLA, CDBG, MCEP and the board’s DNRC, and has completed millions of dollars in water and sewer improvement projects over the past few years.

Williams said MCEP’s $460,000 grant for the Libby Creek community will have no impact on other city grants and will build three water mains on Cedar Street to improve flow and pressure in the system. Regarding the grant, there is one thing the city has been trying to communicate but has yet to be heard; the grant does not apply to and cannot be used for annual maintenance and operations of the water or sewer departments. The base rate covers maintenance and operating expenses, while the grant covers the cost of capital improvement projects.

At the March 4 council meeting, councilors approved a resolution to increase rates on the municipal utility system for customers connected within city limits and outside the city.

City officials Sam Sykes and Williams said the water rate increase they seek is justified because work needs to be done to replace the water main at the old dam and water treatment plant.

Sikes said we are looking at spending $30 million to replace 2-inch, 4-inch and 6-inch water mains. We need $3.4 million to dredge the lower reservoir and repair the concrete, which caused the leak. We also need $10 million for water treatment plant work.

In terms of the work being done at Cabinet Heights, Williams said it was prudent to use the ARPA grant on the Cabinet Heights project because it was for public health and safety. The Cabinet Heights area is considered to have zero or negative fire flow,

Preventing the Libby Volunteer Fire Department from using fire hydrants. The city is paying to maintain fire trucks to respond to fire emergencies. Due to the lack of fire flow, groundwater could seep into our water mains and contaminate city water supplies during an emergency. By expanding the size of the line, the city alleviated health and fire safety concerns in the area.

Sykes also said there is equipment at the 40-year-old sewer treatment plant that will need to be replaced in the near future.

He also said the city currently has $9 million in debt from water and sewer projects undertaken in the past.

Sikes also said there are 23 major water main leaks that need to be repaired.

City councilors approved a sewer water rate increase in January 2020. From October through May, the city charges an additional usage fee of $2.85 per thousand gallons. During the summer period from June to September, residents pay usage fees based on their average water usage over the previous eight months.

Residential or commercial customers who live in the city or county currently pay $33.48 per month for sewer service.

Under the current proposal, residential customers with three-quarter-inch sewer pipes would pay $43.92 per month. Customers with a 1-inch line will pay $52.71.

For commercial customers, those with three-quarter-inch lines will pay $52.71 per month for sewer service, while those with one-inch lines will pay $63.25 per month. Rates for users with 6-inch lines are as high as $395.29 per month.

Water rates vary depending on where the customer lives.

For city residents on the three-quarter-inch line, the monthly rate is $45.25, while county residents pay $56.60. City business customers pay $56.37 per month and county business customers pay $70.37 per month.

Urban residential customers pay $46.55 for a 1-inch line, and county customers pay $56.23. For business users in the city, the rate is $74.97 per month, while in the county, the rate is $93.59 per month. For fire suppression, fees for all users range from $46.02 for a 1-inch line to $109.37 for a 6-inch line.

In addition, water and wastewater are charged per 1,000 gallons, with prorated charges for gallons used in increments beyond 1,000 gallons.

Under the new proposal, city residential customers with three-quarter-inch lines would have a monthly rate of $55.81, while county residents would pay $69.81. City business customers pay $69.54 per month and county business customers pay $71.91 per month.

Urban residential customers with 1-inch lines will pay $57.42 per month, and county customers will pay $70.42 per month. For commercial customers in the city, the rate is $92.48 per month, and for the county, the rate is $115.43 per month. For fire suppression, monthly rates for city customers range from $57.42 for a 1-inch line to $140.19 for a 6-inch line.

For county personnel, monthly fire suppression fees range from $70.42 for a 1-inch line to $171.92 for a 6-inch line.