Pair of alternate funding sources considered
There are few people who dispute the idea of a conservation easement to protect the city’s water resources in Haskill Basin.
Whitefish area residents have long considered water quality of paramount importance, especially as it relates to the town’s crown jewel — Whitefish Lake. The city’s growth policy strongly affirms the community’s desire to preserve its water resources.
The issue at hand isn’t whether water quality should be preserved. It’s how to pay for the city’s $8 million portion of a $17 million conservation easement to protect more than 3,000 acres in Haskill Basin.
Whitefish’s roughly 4,133 registered voters will be asked next month whether to increase the city’s resort tax from 2 to 3 percent to pay for the easement over several years.
If the resort tax ballot measure is rejected, Whitefish has backup plans, including a general obligation bond that would require voter approval or a water rate increase to pay for a water revenue bond.
A general obligation bond would cost the average residential homeowner $102 annually for a 20-year bond, or $178 annually for 10-year bonds.
A water rate increase to pay for a water revenue bond is the city’s other funding alternative. It requires City Council approval only.
For 30-year bonds, residential homeowners would see their water rates increased by 17.24 percent, which translates to $6.72 per month over 30 years. A 10-year water revenue bond would be more costly to city homeowners, forcing a nearly 47 percent increase in water rates, or $18.25 more per month over the life of the bond.
The estimated rate increases are based on an average monthly residential consumption rate of 4,300 gallons.
Commercial property owners would pay more to support a water revenue bond. Their water rates would increase by $27.68 per month for a 30-year bond or $75.21 monthly for a 10-year bond.
Supporters of the resort tax increase maintain a water rate increase would be too costly for the city’s older residents on fixed incomes. According to the 2010 U.S. Census, 11.4 percent of Whitefish’s 2,982 households had someone living alone who was 65 or older, and 12.7 percent of those 65 and older live below the federal poverty level.
The city of Whitefish specifically offers senior citizens financial assistance on their water bills, according to Mayor John Muhlfeld. Seniors can get a 75 percent discount on the base fee for water and sewer service, which saves about $33 per month on both water and sewer.
There is also assistance available through the Low Income Energy Assistance Program for low-income residents needing help with heating and cooling costs, according to Flathead County Agency on Aging Director Lisa Sheppard.
This program doesn’t help with water bills, “however, if someone living on a low income experienced an increase in their monthly water bill, then LIEAP assistance with heating/cooling might offset that, assuming they weren’t already on the program,” Sheppard said.
Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.