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Townsend City Council Meeting
Author: Rachael Brug, Staff Reporter

Townsend City Council Meeting

Rachael Brug

Staff Reporter

The Townsend City Council granted a one-year waiver of the city's special event insurance requirement to preserve a 40-year street dance tradition, received an encouraging update on the city's new water tower, and approved the Rotary Club's Fall Fest event application at its regular meeting Tuesday, July 15.

Street Dance Insurance Waiver:

John Fuchs, owner of the Commercial Bar, asked the council to waive the city's 2-to-4-million-dollar liability insurance requirement for the annual rodeo street dance, scheduled for August 7 and 8. Fuchs said obtaining that level of coverage would cost between $2,600 and $4,800, effectively ending the longtime event. He noted that Helena, Bozeman, Great Falls, and other Montana cities require only 1 to 2 million dollars for comparable events, and that the Montana Department of Transportation — which owns the highway right-of-way where the dance takes place — requires only $500,000 to $1 million.

Council members noted the higher threshold had been set based on guidance from the Montana Municipal Interlocal Authority (MMIA) and expressed frustration that MMIA appeared to have given different recommendations to different cities. Council voted unanimously to grant the waiver for the 2026 event, conditioned on Fuchs providing proof of his existing 1-to-2-million-dollar policy. Mayor Vickie Rauser said the city will contact MMIA for clarification on its recommendations ahead of next year's events.

Water Tower Filled Without Incident:

Townsend's Public Works Director reported that the city's newly constructed water tower was successfully filled last week with no leaks and no equipment failures. Pumps performed beyond expectations, and the lower portion of the tank filled ahead of schedule. He credited water system technician Eric Crusch and the city's contractors for a smooth process and said the Harrison Street barricade — left in place while crews finish insulating the connecting pipes — should come down within about a month.

The director also addressed a brief low-pressure event that occurred the night of July 3: the cause was not a failure of city equipment but of a communications port with the city's remote monitoring provider, Global Net Port, which prevented pressure alerts from transmitting. The problem was identified and resolved within roughly 10 minutes. As a result, technicians have added a loss-of-communication alarm to the monitoring system so future outages are detected immediately.

Pool Inspection and Committee Meeting:

Following a recent state inspection, the public pool has several compliance items in progress. The deep end was temporarily closed after the cover's paperwork could not be produced for the inspector; a new cover was expected to arrive the following day to allow the area to reopen. The public works director requested a meeting with the pool committee — tentatively set for Thursday, July 17, at 5 p.m. at city hall — to review quotes from the inspector before deciding which recommended upgrades to pursue. He also raised a broader question about the city's long-term plan for the facility, noting that capital costs are rising each year.

Rotary Club Fall Fest Application Approved:

Council unanimously approved the Rotary Club of Townsend's event application for Fall Fest 2026, praising it as thorough and well-organized, complete with maps showing street closures and park setup. No Rotary representatives were present, but council took the opportunity to thank the club for this year's Fourth of July parade, which drew large crowds along Broadway and produced minimal cleanup concerns the following morning.

Budget and Financial Updates:

Council approved a $10,000 amendment to the 2025-2026 urban forestry fund budget following a public hearing with no public comment. The increase, requested by the urban forestry board to cover higher watering costs during warmer temperatures, will be funded from existing cash within the urban forestry fund. Council also approved the preliminary 2026-2027 city budget, which precedes the required public hearing process.

In a financial update, Mayor Rauser reported that a meeting with Opportunity Bank confirmed that a previously identified administrative fee — which had reduced the city's interest return from 3 percent to around 1.5 percent — has been reduced from two percentage points to a half-point, restoring the rate to approximately 3 percent. June interest earnings totaled roughly $14,500. Council will continue monitoring rates and may explore the State Investment Pool (STIP), currently yielding around 3.8 to 4 percent, for a portion of the city's funds.

City Clerk Carrie also noted that Special Improvement District loans for SID 5 and SID 6 have been paid in full. A minor appropriation change will come before council at the next meeting to close out the accounting.

Other Notes:

A military vehicle convoy will stop in Townsend on August 2, parking along South Pine Street near the park. The public is welcome to view the vehicles. Residents on the first two blocks of South Pine will receive advance notice by letter.

The public works director flagged ongoing trouble with the North Cherry Street reconstruction project, where the contractor has been unable to establish an adequate base layer. An engineer was expected on site the following morning. Potholes on I Street and South Maple are being monitored; repairs are planned to be combined with the eventual North Cherry paving.

Claims for June 2026 were approved.