Construction of the new Libby Reservoir Dam officially was not on the City Council’s agenda Tuesday, but nonetheless, it still was the 500-pound gorilla in the Chambers that affected much of the dialogue.

Mayor Doug Roll, who has publicly staked his administration on restoring economic development in Libby, warned the city is looking at increased water rates as infrastructure improvements are necessary. Those expenses range from replacing the reservoir all the way to its distribution system — water mains — that are bleeding as much as 100,000 gallons a day.

“We need to find another source of revenue,” Roll said Tuesday. “You can’t raise taxes without going to a vote.”

The mayor mentioned the city General Fund remains at $1.1 million with the sources for that revenue being property taxes and gambling revenue.

“We know what the revenues and expenses are. We’ve lost two to three people, especially in the Street Department.”

No action was taken, but the mayor suggested to City Council members that settlement money from International Paper lawsuit be used to defray increased water costs, a plan he asked the board to ponder.

County resident Bill Silva suggested the city consider a series of wells instead of a reservoir, stating the trend is away from open-water sources instead favoring wells.

The item will be on subsequent agendas.