Stevensville backs water rate increase

by John Dowd

At the September 25 regular meeting of the Stevensville Town Council, the council heard a presentation by Bobbie Schular, from Montana Rural Water Systems. This organization works state-wide with the Montana Department of Environmental Quality and other government organizations to keep up standards of water across the state. The organization helps towns and cities set their budget, determine pricing and inform staff on proper water procedures and policies.

According to Stevensville Mayor Bob Michalson, Schular was brought in to help inform the public as to why the rates were increased for sewer and water. 

According to Schular, Montana Rural Water Systems came up with the rates the Town will need to charge based on industry costs and what a town should charge to continue to operate and “pay the bills.”

Later in the meeting, Schular added for context that town sewer and water departments are classified as “non-profit” structures. For non-profit structured enterprises, like sewer and water departments, the goal is sustainability. Any money beyond operating costs, salaries, etc. must be used for repairs, addressing future growth and providing match money for grants. 

According to Schular, chemicals, utilities and salary costs have skyrocketed in the last few years. According to her and Robert Underwood, a Stevensville town finance officer, for Stevensville alone the cost for sewer has gone up over $34,000 and water has gone up over $36,000. With a $70,000-plus increase over just the last two years, they warn that things would have gotten worse if they did not make the changes sooner rather than later. The increase in rates was established to meet future demand, and according to Michalson in another interview, prevent the rates from going up much more if nothing was done.

According to Schular, Underwood and Michalson, Stevensville has not increased water rates in years, and so is way behind the ball. Schular added that just in the last four or so years, inflation has gone up over 40%. Schular commented that a big part of the chemical price hike has come from new regulations and difficulties in chemical production, which have driven those costs up significantly. 

Another note was how the Town is still paying off its bond debt. Those bonds were taken out for repairs in the past, for sewer and water. According to Stevensville Finance Officer Gina Crowe, the soonest one to be paid off, with the current sewer and water rates after they were raised, will not be until 2040. According to Schular, the Town is “required to service those bonds and put money aside to anticipate future concerns.” Those figures are also factored into the new rates. 

With some of the oldest infrastructure in the state, Schular said Stevensville definitely will need to address infrastructure updates and problems, and likely soon. “Unfortunately, infrastructure has a lifespan,” said Schular.

It is of note that during the special town council meeting on September 23, Underwood spoke about possible cuts that would save money, looking at concerns about the raised utility prices. Underwood said if the Town really wanted to save money, they should look to the pool, which loses over $20,000 a year. He also said they could consider dropping a police officer, or the park director position. However, many agree that none of this would be welcomed change. Underwood said that the problem was not something that could be resolved by cutting things, and was directly from the rising cost of life. 

After Schular’s initial presentation, the council members weighed in. Council member Cindy Brown said, “Yards are brown, people can’t afford to pay their water bills.” Brown then asked if there was a way to meet in the middle and retain affordable rates. Schular responded, saying the only way is to lower costs, and those are not going down. “The revenue has to meet the demand,” said Schular. Schular then said that this is all a part of a broader issue, and that Montana has some of the highest costs of living in the country. Houses are expensive, groceries are expensive and the services people want and need are expensive as well. 

Schular added, “Your team has done a great job showing that they are taking this seriously.” According to Schular, the issue is dire, and these rate increases are coming not a moment too soon. 

Brown then commented on the dropping population, saying people cannot afford to stay in their homes. She is unsure of what they are going to do. 

Michalson spoke after Brown and Schular’s discourse, stating, “Do we want to plan for the future of Stevensville, or do we want green lawns?” According to Michalson, things are falling apart and the Town is currently just playing catch up. Michalson added that, if they do not put money aside, they will not be able to fix the issues present now, or to come. 

During the public comment period after Schular’s presentation, former mayor Pat Groninger spoke. “No one person is to blame for the water rates,” said Groninger, and he also said inflation costs are up. “They’re not lying to you,” Groninger said to the public. “They’re doing the best they can. If you want to drink the water, pay the bill.” 

Groninger also noted that he wanted to thank the Stevensville Police Chief, and said, “We’re gifted to have him.” 

Spring Street concerns were remedied and questions were answered during the public comment portion of the meeting. Arielle Leister, who lives on Spring Street, said things were cleaned up well and handled in the professional manner they expected. 

Another item of note was raised by Sean Doyle, president of the Stevensville Civic Club, who came to the meeting to seek a special event permit for the new “Brews and Boos” event. This event will be replacing the Scarecrow Brewfest, and will be moving to Lewis and Clark Park. It is no longer associated with the Scarecrow Festival event and will be held at the end of the month, on Saturday, October 25.