City Council Sets Water Rate Increases
 | Author:
Linda Kent, MT43 News Staff Reporter
MT43 News Correspondent |
City Council Sets Water Rate Increases
Linda Kent
MT43 News Staff Reporter
Townsend’s City Council approved a resolution to increase residential water rates by $35.23 per month in June and again in September. The increases would support the estimated $17 million cost of replacing the city’s main water tower with a much larger storage unit to meet current and anticipated water use needs in the community.
A public hearing on the increase will be held Tuesday, June 18, at 6:30 p.m. at City Hall.
The proposed increases would raise the current residential water charge from $20.57 per month to $55.80 in July, then $91.03 in September. Commercial rates will increase by a multiplier of the new base residential rate, dependent on the size of the service line. The council voted to increase rates in two phases to lessen the immediate impacts to local water users.
The two-step rate increase also provides the council with some flexibility to reduce the overall total if project bids come in lower than the anticipated price. Once a bid is selected, the city will need to determine how long of a bond term it will seek. Longer bond terms mean lower monthly costs, but greater overall long-term cost for the project to water users.
Bidding for the estimated $17 million projected is expected to begin in June, with the successful bid to be awarded in July. Work could begin as soon as the bid is awarded.
While the price tag of the successful bid will have the greatest impact on the total increase in water rates, the council will also be exploring bond rate and term options to minimize the rate hike to the extent possible.
