City hears advice on utility rates

The chairman of the Northwest Power and Conservation Council encouraged Kalispell City Council on Monday to charge higher rates for big users of city water and sewer.

Bruce Measure, who formerly was president of the Flathead Electric Cooperative Board of Trustees, made the comments during a public hearing on proposed increases to water, sewer and solid waste fees.

After the city commissioned Columbia Falls city attorney Bill Shaw to do a sewer rate study, Shaw recommended an increase in the base charge to pay for infrastructure and fixed costs.

During its regular meeting on April 4, the Kalispell council will consider an increase in the bi-monthly sewer base rate from $3.75 to $15 for fiscal year 2011.

“As you use more power, you pay a higher rate,” Measure said, citing the example of what Flathead Electric does.

“The rate structure you have now socializes the benefit.”

He noted that a $15 base rate was the maximum the general public would tolerate. “Keep the base rate low to preserve relations with the general public,” he said.

Gary McHenry of Kalispell said the increase “sort of floors a person, especially when they’re on a fixed incomes. It’s unnecessary to hit us with big raises in the first year.”

Pauline Sjordal said she supports Measure’s suggestion.

The city is trying to pay for a $14 million sewer treatment plant upgrade that was built to provide for expected growth that didn’t occur.

City Finance Director Amy Robertson has said the city last had a sewer rate increase in 2007. That was part of a series of 5-percent rate increases that went into effect from 2003 to 2007.

Last month, council members Randy Kenyon and Jim Atkinson spoke positively about the sewer base rate proposal, but Bob Hafferman questioned raising the bi-monthly fee by more than 400 percent. Jeff Zauner also questioned increasing the rate to $15 “out of the gate.”

Robertson has said the city’s sewer fund will be $144,661 in the hole in operating cash by the end of June.

The proposal also calls for raising the sewer volume charge from $4.19 per thousand gallons to $4.53 in fiscal year 2012 and $4.78 in fiscal year 2015.

The water base bi-monthly rate would be increased from $3.75 to $15 for fiscal year 2013. 

The solid waste bi-monthly rate per 100-gallon container would increase 50 cents for fiscal year 2012.