Lakeside County Water and Sewer District ratepayers could see their monthly water and sewer expenditure increase by as much as $60.64, according to a draft rate study considered by board members at a July 21 meeting. Somers customers could see their monthly rate increase by $76.63 per month.  

The draft rate study, prepared and presented by Robert Peccia and Associates, proposes raising the base wastewater rates as well as introducing a special assessment bond to keep pace with operational expenses and replace aging infrastructure.  

District General Manager Rodney Olson stressed during the presentation that the figures represent a “worst case scenario.” The district is currently seeking alternative methods to fund the wastewater treatment plant upgrades, including $13 million in grants from the federal government. 

The board will not vote on a rate increase until the spring, after it is known whether the district has received additional grant funding and construction bids are finalized.  

For Lakeside residents, base rates would increase from $73.84 per month to $93.23 per month, a 26.3% jump. Meanwhile, for Somers customers, the base monthly rate would skyrocket from $35.42 to $112.05, a 215.4% increase. As recently as 2025, Somers residents paid $5.42 per month for water and sewer services.  

In addition, the draft rate study proposes establishing a $15.5 million special assessment bond to finance a portion of the second phase of the district’s ongoing Wastewater Treatment Facility Improvement Project. The bond would be divided evenly among every parcel within Lakeside County Water and Sewer District boundaries that would stand to benefit from the new facility, even if it is not currently utilizing the district’s services.  

Based on the current number of lots in the district, each landowner would pay an additional $495 per year, or $41.25 per month, for the next 30 years, which is the assumed repayment period for the bond.  

For an average home, the total monthly bill would come out to around $134.48 paid to the district for wastewater services and the special assessment bond.  

Olson said that since the bond is reassessed annually, the yearly total per parcel will likely decrease as Lakeside grows and lots are subdivided. In particular, he pointed to the future addition of the Territory 1889 development, which plans to have more than 350 homes when it is completed.  

Lots that are physically unable to hook up to Lakeside County Water and Sewer District services will be assessed on a case-by-case basis and exempt from the bond, Olson said. 

At the earliest, landowners would see the special assessment bond appear on their fall 2027 property tax bill.  

During public comment, some ratepayers expressed concern over the flat rate for the assessment bond. Tanya Kidd, a Lakeside resident, asked why the district was not pursuing a model based on acreage or assessed value.  

"With each method, there are some people that just don't fit," Olson responded. "Each method has its advantages and disadvantages to different groups, so it's certainly not a perfect thing. For sewer, if you're one normal home, that seemed to be the most fair. There are people that would argue if you go based on assessed value, some people pay more unfairly when they're getting the same service as someone next door who just happens to have a cheaper home." 

The proposed rate increases follow on the heels of a significant and controversial 2025 increase that drew concern from ratepayers and saw rates bumped up $30, a 61.7% increase from the previous rates.  

Despite this, public comments focused less on the proposed rate increases and more on the ongoing litigation challenging both the Wastewater Treatment Facility Improvement project and the Territory 1889 development.  

Citizens for a Better Flathead, a local watchdog organization, is suing the Department of Environment Quality over its issuance of a groundwater discharge permit for the first phase of the wastewater treatment facility project. The group is also suing the Lakeside County Water and Sewer District over its decision to incorporate Territory 1889 into the district, arguing the board violated public meeting procedures when it did so.  

"In light of the ongoing litigation, we don't feel it's fiscally prudent for you to move forward with construction at this time," Jennifer Tipton said, representing North Shore Water Alliance. 

"I do have questions on what analysis you've done on what liability there is if the funding isn't approved that you've entered into contracts for, if the court case rules that the project isn't viable," Mayre Flowers, co-executive director of Citizens for a Better Flathead, said. "What are all the liabilities that the ratepayers should be made aware of upfront, right now?" 

The board did not take any action following the presentation. 

"To get some direction from me, I say yes, let's move forward with the direction this is showing us right now," Director Tim Kluesner told district staff. "To the general public, you think about it and look at it. It's out there not for the public to digest. The one thing nobody's going to like the money, but unfortunately you've got to pay for what you need." 

The draft 2026 Lakeside County Water and Sewer District Wastewater Rate Study can be found at lcwsd.com/documents/1942/26-0715_DRAFT_LCWSD_Wastewater_Rate_Study.pdf.

Reporter Elsa Ericksen can be reached at 406-758-4459 or [email protected]. If you value local journalism, pledge your support at dailyinterlake.com/support.