Thompson Falls looks at water rate hike

Thompson Falls Council members discussed an issue during May’s meeting that many smaller Montana municipalities are confronting — aging infrastructure, rising maintenance costs and a growing fixed-income population.

Last Monday, the council unanimously passed Resolution No. 868, declaring its intent to increase water rates. The resolution is only the first step in the process required under Montana law. A public hearing and comment period will follow before any final decision is made.

Parts of the Thompson Falls water system are approaching 100 years old, contributing to an estimated 50% water loss within the system. In addition, a recent Council decision eliminating water fees for 25 vacant lots resulted in an annual revenue loss of $12,825.

Under the proposed increase, the new base water rate would be $60.63 per month, which includes 2,000 gallons of water. Customers would then pay $1.50 for every additional 1,000 gallons used each month. The base rate is calculated using projected metered water sales revenue along with reserve funds required for maintenance, repairs and loan obligations.

Nathan Bilyeu, a shareholder with Jackson Murdo and Grant P.C. in Helena, attended the meeting to answer questions from both Council members and the public regarding the legal requirements for the rate increase. Bilyeu explained that Thompson Falls is eligible for grants covering up to 75% of the project costs. He also noted the city qualifies for low-interest loans because it is considered a low-income area.

During his presentation, Bilyeu compared Thompson Falls’ proposed rates with those in other Montana communities. Libby’s current base rate is $61, Seeley Lake’s is $75.69 and Stevensville’s is approximately $70.

Council members also addressed public concerns regarding the opening of the city pool. The Council unanimously approved hiring Big Sky Outdoor Spaces of Missoula to conduct a walkthrough inspection, drain the pool and prepare a scope of work for necessary repairs. The cost of the service is $999.

The Council approved a wastewater project change order requiring additional work and materials, increasing project costs by $30,604. Council members also approved payment for phases three and four of the wastewater project totaling $915,879, along with payment of $431,465 for phases one and two of the water project.

Annie Wooden provided an update on the upcoming David Thompson Days celebration, scheduled for June 25-27.

“We are adding a parade this year down Main Street focusing on the 250th birthday of America,” Wooden said.

Wooden also noted that First Security Bank will open its parking lot exclusively for handicap parking during the weekend festivities. This year’s car show will be located across from the Sanders County Ledger office parking lot.

During discussions of Water Project Change Order No. 2, Council Member and former Mayor Rusti Leivestad read a letter responding to recent social media allegations of a conflict of interest involving easements across her property.

Four landowners provided easements for two gravity mains crossing their properties, including Leivestad's property. The total cost for the easements was $46,399, with Leivestad receiving $28,442. The easements allowed the installation of gravity mains instead of lift stations and force mains, which would have required pumps and electricity and cost more than $1 million. Gravity mains also reduce long-term maintenance and operating expenses.

In the letter, Leivestad wrote, “I’ve stated before the benefit of the gravity mains and getting these easements to save the initial expense of the lift stations and then ongoing maintenance and repair that force mains require. While I do not do social media, I am told there are those claiming I had a conflict of interest in providing these easements. Possibly they did not understand the benefit the city and residents received from those landowners cooperating by providing access to their property. Spreading these untruths is sort of mean and cowardly if they intend to do my reputation harm.”

During Mayor Gussie O’Connor’s monthly report, she reviewed activities from the past month, including attending construction meetings involving the city, Great West Engineering and S&L Contractors.

O’Connor also participated in an onsite visit to the city pool with Neil Harnett and Kevin Whittenburg, who led discussions and answered questions regarding the facility. She read an Arbor Day proclamation alongside second-grade students from the local elementary school and met with representatives from the Army Corps of Engineers and the Northwest Regional Agency to discuss flood planning efforts for the city and county.

    Thompson Falls Councilor Rusti Leivestad at the Council meeting. (Tracy Scott/Valley Press)