Thompson Falls Council approves water rate hike

Thompson Falls City Council members approved a 41% increase in water rates during their regular July meeting following an extensive discussion that included comments from both council members and residents.

Council Member Raoul Ribeiro led the discussion, noting that most council members had attended a recent public meeting where the financial realities facing the city's water system were explained.

"Most of the council was at the public meeting that was just held. We were reminded quite clearly that, unfortunately, the rates are going to have to go up to meet the demand," Ribeiro said. "If we didn't approve a rate increase, that would put a lot of grants and a lot of our funding sources in question."

Cities and towns are required to maintain adequate reserve funds to remain eligible for many state and federal grants. Ribeiro warned that failing to meet those requirements could have long-term consequences.

"That would be a disaster for the city's ratepayers," he said. "The only way to finance that going forward would be to raise the rates even higher."

The town of Plains faced a similar situation earlier this year and also approved a significant water rate increase.

Ribeiro emphasized that the increase is not necessarily permanent.

"This rate increase doesn't have to last forever," he said.

Council Member Catherine Dewitt acknowledged that the increase would be unpopular but said the council had explored numerous alternatives.

"No one really likes this," Dewitt said. "We are trying to come up with different alternatives, and we came to a lot of dead ends."

Dewitt suggested the city consider selling city-owned lots as a way to reduce municipal debt and potentially ease future pressure on utility rates. She ultimately supported approving the rate increase.

The council approved the water rate increase with one dissenting vote from Council Member Mike Shear.

During public comment, local resident Melinda Thompson urged the council to continue looking for ways to reduce expenses.

"There needs to be an entity within the community, and the council, that is consistently looking to cut the fat," Thompson said.

IN OTHER business, the council approved a $1,599 water leak credit for Rimrock and voted to further review a requested water and sewer credit for The Oxford.

Council members also discussed changing the zoning designation for the Mule Pasture and Orchard areas from Residential A to Recreational. Although both properties are owned by the Forest Service, they fall within the city's zoning jurisdiction. Any zoning change will require additional public hearings and council consideration before a final decision is made.

The council approved renewing its contract with the Montana League of Cities and Towns, which assists the city with compiling financial and audit information required by various agencies.

Council members also considered renewing a three-year preventive maintenance contract with Western States. The agreement covers maintenance for several pieces of city equipment, including generators.

Council Member Larry Milner opposed renewing the contract.

"In my opinion, this is way overpriced," Milner said. "They want $84 just for travel time. I think this is government price gouging."

Milner made a motion to reject the contract and seek local bids instead.

"Let's try and go local with this," he said. "Let's put this out to bid with local entities."

The council approved payments of $645,086 for Wastewater Project Phases 3 and 4 and $153,319 for Water Project Phases 1 and 2.

During her monthly report, Mayor Gussie O'Connor highlighted several meetings she attended, including those of the Sanders County Chamber of Commerce and the MSU Local Government Center. O'Connor also administered the oath of office to the city's newest police officer, Garrett Sherwood.

    Thompson Falls Ward 3 Council Member Larry Milner discusses a contract with Western States Preventive Maintenance at last week meeting. (Tracy Scott/Valley Press)