Kalispell sewer users could face higher costs

Kalispell officials are proposing a 5-percent increase in sewer rates.

And that may be just the tip of the iceberg.

“We built a plant to meet anticipated growth,” City Public Works Director Jim Hansz said Monday. “The growth hasn’t happened. We still have the plant.”

He noted that the sewer plant was built in 2006 in an “environment of less energetic competition than we would like,” which meant the city paid top dollar. Construction workers were busy and to get work done, the city had to pay the going rate, Hansz said.

He noted that the project was done on time and within budget, however.

For an average family of two that uses 9,000 gallons of water a month, the bimonthly sewer fee increase would be $2.08, Hansz said. A family of four that used 18,000 gallons would see a bimonthly increase of $3.96.

Under the proposal, the monthly administrative charge would increase 9 cents from $3.75 to $3.94. The monthly consumption charge would increase 21 cents from $4.19 to $4.40.

Hansz said the city hasn’t had a sewer rate increase in two years. Kalispell is doing better than some places in regard to sewer rate increases, he said, noting Bigfork Sewer District customers will see a bimonthly increase of $78 if their bond request is not approved.

The increase is estimated to bring in an additional $170,000 in fees. This would conceivably result in operating cash of $238,000.

A 5-percent increase is “still way too low,” City Finance Director Amy Robertson said. “We need further raises down the line.”

Mayor Tammi Fisher asked: “Five percent is just the tip of the iceberg?”

“I think so, yes,” Robertson replied.

“Without an increase you have no operating cash,” Robertson said. “It drops to less than $100,000.” The city needs enough cash on hand for three months’ operating expenses, she said.

“We have a long-term issue to look at,” City Manager Jane Howington said. “We built a plant based on growth that isn’t there. We’ve deferred capital and cut some of our expenses. This is the only fund we’re saying, ‘We can’t quite make it work.’”

She was referring to the city’s four user-fee funds, which also include airport, solid waste and water.

Council member Tim Kluesner suggested the city outsource its water billing operation. “We’re paying $362,000 to bill our water and sewer” customers, he said. “I know the private sector could do it more efficient.”

Howington said she plans to make some changes to the water billing operation in the future. “That was not something I could get done this year.”

One of the ideas is to implement a remote read program. This would allow the city to do away with bi-monthly billing and reduce personnel costs by eliminating meter reader positions. It also would detect water leaks from broken water mains earlier. The city possibly could obtain a federal energy grant to help fund such a conversion.

Monday’s discussions were held at a budget workshop.

The city’s preliminary 2010-11 general fund budget is currently slated at $9.07 million, which represents a decrease of $31,037, or three-tenths of one percent.

People can view the preliminary budget online. Go to kalispell.com and click on “Hot Topics.”