MOYIE SPRINGS — The city’s long-planned sewer system upgrades are complete, allowing officials to turn their attention to what customers will pay each month. 

Rates are expected to rise because of higher operating costs and potential loan repayment to the Idaho Department of Environmental Quality. 

At a special meeting Feb. 17, the Moyie Springs City Council voted to propose two possible rates: $80 per month if the loan must be repaid in full, or $60 per month if the DEQ forgives the city’s debt on the sewer project.

The city sent a letter to the DEQ after its Jan. 7 meeting requesting loan forgiveness but has yet to receive a response. City officials said they are hoping for relief. DEQ’s budget has been reduced by about 5% following two rounds of state cuts in the past year. 

The loan totals about $724,000 and carries a 1.75% interest rate over 30 years. 

Even if the loan is forgiven, the proposed $60 rate would represent a 33% increase from the $45 per connection each month that has been in place for multiple years. If it is not forgiven, customers would pay $20 more per month, or $240 more per year, than under the lower proposal. 

A public hearing is expected during the second week of March. Under state law, the council may adopt a lower rate than the one proposed but cannot approve a higher amount. 

City officials noted that many residents connected to the system have lower incomes than the county as a whole. In a city survey conducted in March 2020, 145 of 159 respondents — about 91% — met low-to-moderate income guidelines. 

In total, 36% of Moyie Springs residents qualified as low-to-moderate income that year, which includes the 91% on the sewer system.   

At that time, the annual income limits were $34,800 for a one-person household, $39,800 for two people, $44,750 for three, $49,700 for four, $53,700 for five and $57,500 for six. 

Currently, there are 112 connections on the sewer system, which has a capacity of 200.  

Officials said they have reduced expenses for sludge removal, as well as wages and benefits, to keep rates lower. Without those cuts, the monthly cost could have been over $100 a month per connection. 

Sewer rates have remained at $45 per month for roughly a decade. In 2013, the monthly rate was $14, before a $5 increase and two subsequent $13 hikes by 2016 brought it to its current level.

The sewer project took more than six years to complete and had a total cost of $7.86 million as of 2023.