Libby officials propose water, sewage rate increases

Libby city residents and business owners with plans for their tax refunds might want to consider the possible water and sewer rate increases officials are pondering.

At the March 4 council meeting, city council 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 officials will hold a public hearing in council chambers at the city building at 7 p.m. Monday, April 8. The hearing will give Libby utility customers to hear the city’s recommended changes.

According to City Administrator Sam Sikes, a presentation will be given to show what base rates pay for, how much rates should have been in 2023 and how rates need to be in the future.

Sikes said the last water rate increase was in 2014. If the council passes a resolution to increase it, the average customer’s sewer bill will increase $10.56 per month.

He also said the last sewage rate increase was in 2020. If the council passes a resolution to increase it, the average customer’s water bill will increase $10.44 each month.

Sikes said the proposed increases are necessary due to rising costs to the city in the operation, maintenance and replacement in water and sewer systems.

Montana Code Annotated gives municipalities the power and authority to regulate, establish and change rates and charges in a reasonable manner.

Council member Hugh Taylor said a 19% increase is, “upsetting at first, but it’s necessary.”

Sikes pointed to the numerous water leaks that have cost the city $100,000 over the years and that the sewage treatment plant is 40 years old.

Customers, residential or commercial, living in the city or county currently pay $33.48 per month for sewage services.

Under the new proposal, residential customers on a three-quarter inch sewage line would pay $43.92 per month. Those on a 1-inch line would pay $52.71.

For commercial customers, those on a three-quarter inch line would pay $52.71 per month for sewage services while those on a 1-inch line would pay $63.25 per month. The rates go as high as $395.29 per month for users on a 6-inch line.

Water rates vary depending on where customers live.

For city residents on a three-quarter inch line, the monthly rate is $45.25 while county residents pay $56.60. City commercial customers pay $56.37 and county commercial customers pay $70.37 per month.

Residential customers in the city on a 1-inch line pay $46.55 and county customers pay $56.23. For commercial users in the city the rate is $74.97 per month and in the county, it’s $93.59.

For fire suppression, rates for all users range from $46.02 for a 1-inch line to $109.37 for a 6-inch line.

In addition, there are charges per 1,000 gallons of water and sewage and proportional amounts for gallons used in increments other than 1,000 gallons.

Under the new proposal, city residential customers on a three-quarter inch line, the monthly rate would be $55.81 while county residents would pay $69.81. City commercial customers would pay $69.54 and county commercial customers pay $71.91 per month.

Residential customers in the city on a 1-inch line would pay $57.42 per month and county customers would pay $70.42. For commercial users in the city the rate would be $92.48 per month and in the county, it would be $115.43.

For fire suppression, monthly rates for city users would range from $57.42 for a 1-inch line to $140.19 for a 6-inch line.

For those in the county, fire suppression monthly rates would range from $70.42 for a 1-inch line to $171.92 for a 6-inch line.

Sikes said in a March 7 letter mailed to Libby utility customers that if they sought more information they should contact him at city hall or call 293-2731, ext. 4102.