PRIEST RIVER — Priest River residents could see up to an $8.61 increase in their water and sewer bill, pending approval on Aug. 20.

A motion to approve the fees was tabled following a public hearing on Monday evening, during which City Council members heard several concerns and questions from residents. The main question was "why" the increase? Mayor Jim Martin said as prices of electricity, wages, health insurance and other costs to keep the city water and wastewater in operation go up, so do the fees.

"The water and the wastewater fund, they are called proprietary funds in the government world, which means we have to run them like a business," Martin said. "So when we go through this audit process every year ... we have to make sure that we are not operating a business at a loss."

There is also a section of the sewer line on Second Avenue budgeted for replacement in fiscal year 2019, as it is crumbling and falling apart, Martin said.

For residents within city limits, who use 12,000 gallons or less of water each month, the bill is currently $92.72. With a proposed increase of $3.95 a month for water, $3.67 a month for wastewater, and a sewer improvement bond increase of $0.99, the total bill would be $101.33 each month.

A woman who submitted written testimony, read into record by city clerk and treasurer Laurel Thomas during the public hearing, said rates are already high for her income as she is 92 years old and lives on Social Security. Others who testified in person echoed her concerns, one noting that Priest River is a low income area and many people live on a fixed income. A couple of residents suggested the city change to a sliding scale, so residents pay for what they use rather than a fixed rate.

"If you use more, you have to pay more," said one community member. "If you use less, you get a break."

Of the current $92 bill, Martin said approximately half is bonds, and the other half is operation costs. As far as bonds, which are approved by voters, he said each customer pays the same amount and that will not vary.

"The ultimate goal was always to finally get a system where we can charge a very small base rate, and then charge everybody for what they use," Martin said. "The problem is, to get there, we have to have money to be able to install meters."

The city has been working toward that goal, he said, as about 85 percent of the new meters have been installed. The last 15 percent of meters are the "most difficult" to install, he said, so they will also be more expensive.

The public hearing also included a proposed change in multi-unit utility rates.

Under the proposed rate change, those with shared meters will pay the reduced rate of 75 percent. Multi-family units with individual meters will be charged the full rate, excluding those who have prior agreements with the city, as Martin said the city will honor those.

On July 30, council members adopted a tentative budget for fiscal year 2019 of $7,959,865. With the tentative budget, council adopted the maximum budget amount for 2019, meaning the total can be decreased but not increased before final adoption.

A public hearing on the proposed 2019 budget is scheduled for 5:30 p.m. Aug. 20 at City Hall, 209 High St.

Mary Malone can be reached by email at mmalone@bonnercountydailybee.com and follow her on Twitter @MaryDailyBee.