No support for sewer, water rate increase in Libby

Libby officials got more than an earful of negative comments about the proposed water and sewer rate increases at an April 8 public hearing.

The hearing was moved to the Ponderosa Room in the city building to allow for more people to attend and the crowd was still standing-room only.

Business owners, landlords and renters shared their concerns passionately with city councilors, Mayor Peggy Williams and City Administrator Sam Sikes.

Libby Church of God Paster Ben Fosgate spoke about people, “living on the bubble” and his concerns about the potential effects of water and sewer rate hikes.

“There are a lot of people on the bubble in this community and we’ve worked to try and help them get out of living in their cars and into an apartment,” Fosgate said. “With the kind of increases being talked about, there’s gonna be a lot of people on this bubble that will tip over and then we’ll have to deal with more issues.”

Many business and property owners thought the way the city was approaching the proposed increased rates was faulty.

“I think you got this all backwards,” Jeremy Hageness, a Libby realtor and business owner, said. “If you did your homework, you’d charge on actual usage, not per door. “If I have an empty four-plex, I’m still paying?”

He also questioned the comparison cost for a brewery vs. a bar.

One young woman said she had friends who would move to Missoula because the rents are the same, but the wages are higher.

Penny Hise said she owns two properties in town and a liquor store.

“I’ve paid for services I’ve never used,” she said. “We need to fix the water meters and the money for water and sewer hookups, where does that go, for repairs or the general fund.”

Pat Richardson lives alone in an apartment in Libby. She said she’s already received a letter in the mail that said her rent would be increasing $100 per month.

At the March 4 council meeting, councilors approved a resolution of intent to increase rates for users, inside city limits and those outside who are connected, of the municipal utility system.

City administrator Sam Sikes and Mayor Peggy Williams say they are justified in seeking the increase because of the work that needs done replacing water line mains, at the old dam and at the water treatment plant.

“We’re looking at $30 million to replace 2-inch, 4-inch and 6-inch water mains,” Sikes said. “We’ll need $3.4 million to dredge the lower reservoir and fixing the concrete, which has led to water leaks. And we’ll need $10 million for work at the water treatment plant.”

Sikes also said there is equipment in the 40-year-old sewer treatment plant, “that’s gonna need replacing in the near future.”

He also said that the city has a current debt of $9 million for water and sewer projects it has undertaken in the past.

Libby resident Debra Lee mentioned the city’s water rate increases five years ago.

“They said then that would get us caught up, but apparently that didn’t happen,” Lee said.

City councilors approved higher sewer water rates in January 2020. Under the reworked system, residents paid a flat monthly fee of $29.75, up from $26.63. The city charged an additional usage fee of $2.85 per thousand gallons from October through May. During the summer months — June through September — residents paid a usage fee based on the average water consumption of the prior eight months.

Before the public gave their comments, Sikes did a Power Point presentation. Sikes described the water department as a “business” while explaining how rates are calculated and showed data that indicated rates should have been higher in 2023.

When Sikes said it was 10 years since the last increase, it prompted someone in the crowd to utter a profanity.

Sikes also said there were 23 major water line leaks that needed to be fixed. 

Some asked if there were enough federal or state grants to help pay for the work.

“We get grants annually for water and sewer work, but if it fails, I don’t know if the state steps in or not and it’s a place we don’t want to get to,” Sikes said.

In an April 9 email to The Western News, Sikes said there was a recommendation to remove RV parks from the resolution. 

“I am going through all the comments and questions from last night right now to answer them and see if any could be possibilities for change,” Sikes wrote. “I’m also setting up a couple of meetings with customers to hear their plans.”

Sikes said he would be giving reports to Mayor Peggy Williams. Sikes also said the resolution will be on the agenda for the Monday, April 15 meeting.