ST. MARIES - St. Maries residents could have water meters sooner than originally expected.

The city on Aug. 3 will float a $2.1 million bond that would be repaid over 30 years to install water meters and develop a second water source on the St. Joe River.

"We don't have water meters, and we're one of the few cities in the state that don't," said Mayor Tami Holdahl, adding that a few new businesses have meters, per city ordinance.

The total bond amount, with an estimated interest rate of 3.25 percent, would be about $2.49 million.

All residents, no matter how much water is consumed, are charged a flat monthly rate of $36.

If the proposal is approved with a simple majority, the city estimates that about 88 percent of its customers will see a decrease in their bill as residents would be allowed to consume up to 4,200 gallons for a base of $29.

Beyond the proposed flat rate, the cost increases 60 cents per 1,000 gallons for 4,200 to 12,000 gallons, 80 cents per 1,000 gallons for 12,000 to 36,000 gallons and $1 per 1,000 gallons over 36,000.

Under the structure, residents could consume as much as 12,900 gallons for $35. The average home in Bonners Ferry, a similar-sized town that St. Maries uses as an example, consumes about 8,000 gallons per month.

A public informational meeting on the bond will be held at 7 p.m. Wednesday at the Eagles Lodge basement.

The bond, which would not increase taxes, would be repaid through the new water rate structure, Holdahl said.

Holdahl said water conservation and creating fairness to customers with water costs are among the reasons behind the bond.

"No matter if you're a large water user or a grandma living alone, you currently pay the same," she said. "We're trying to make it fair and equitable for everyone.

"If people are being metered, it will decrease the water usage, then by conserving water you can increase your capacity and offer more hookups."

Phil Boyd of Welch Comer Engineers, the city's contract engineer, said even though St. Maries is surrounded by water today doesn't mean there will be an unlimited water supply in the future.

"When, not if, water needs to be conserved, we'll position ourselves to use just the amount of water we need and no more," Boyd said.

Based on current city water production, Boyd estimates the city's system could support 2,500 single-family units. If water meters are installed, he estimates the system could support 400 more units for a total of 2,900. The city currently has 1,672 units.

Holdahl said the water meter project would also create jobs for local people.

The city in 2008 decided to install water meters and raised rates by $10 per month with $6 going toward water meters. About $175,000 has been generated for water meters and the plan was to install the devices over seven to 10 years.

However, the city now has a chance at a USDA rural development loan that would allow the meters to be installed in 2011 and create a second water source on the Joe.

The city's primary water source is Rochat Creek, a tributary to the St. Joe 8 miles upstream from St. Maries. Its secondary source is Riverdale well water, but many residents dislike the taste of the water and its high levels of iron and manganese that discolor clothes and fixtures.

If St. Maries had a catastrophic fire, it could lose its Rochat Creek source, leaving Riverdale the only option.

Another water source on the Joe would also allow the city to utilize its water treatment plant if Rochat becomes unusable.

A $700,000 USDA grant would allow the second source to be developed, but would only kick in if the city has water meters.