Stevensville officials, residents debate water and sewer rates as aging infrastructure and rising costs drive increases

Consultants, town officials and residents spent most of the Stevensville Town Council meeting discussing a recently adopted water and sewer rate increase and the town's aging system.

The issue drew lengthy public comment and a presentation by Bobby Shore, representing Montana Roadwater System, who laid out the justification for higher rates and described cost pressures. “We look at the total cost of operating operations and maintenance, everything from salaries to paper clips,” Shore said, and noted the town must ensure “there's enough money set aside in reserves to service those loans in case of catastrophic emergency events.”

The discussion followed Shore’s summary that utilities and capital costs rose sharply in recent years. Shore cited figures that, over two years, sewer expenses rose by about $34,000 and water expenses by about $36,509 — roughly $70,800 combined — driven by higher power and chemical costs. Shore told the council the state code requires municipalities to set rates that are “fair and equitable” and produce sufficient revenue to pay expenses; he referenced the Montana Code Annotated provision cited in the meeting packet (MCA 7-13-4301).

Council members and residents asked how the town might reduce future bills. Shore and staff said options are limited in the near term because many costs are rising universally; potential longer-term pathways include grant-funded solar to reduce power costs and exploring lower-cost chlorine production or sequestering treatments to address discolored water. Shore said DNRC (the Montana Department of Natural Resources and Conservation) has discussed programs that “may possibly help finance solar panels” for water systems, but added those programs were still in development.

Residents described the local effects of higher bills. One resident said watering lawns became unaffordable this summer and reported yards gone brown. Another asked whether sewer charges are tied to summer water use; staff answered that sewer billing is based on the size of the water line, not seasonal gallons used.

Council members and staff outlined the town’s near-term and long-term needs: leak detection work, ongoing repairs, and planning for a new storage tank. Town staff reported a recent leak-detection run and that one notable leak was on Spring Street. Shore and council members said the town has been pursuing grant funding for a storage tank; Shore estimated a new storage tank would cost between $3 million and $4 million and that the town would rely on grants with likely local matches.

Shore also reviewed the town’s long-term debt schedule, saying no bonds are scheduled to be paid off within the next three years and naming payoff years roughly in the 2040s and 2050s (the earliest cited payoff year was 2040). He stressed that grant and loan paperwork commonly requires the town to demonstrate revenue sufficiency and reserve levels to service debt and respond to emergencies.

Officials also discussed water-quality complaints raised by residents, including reports of a black, oily substance in fixtures. Shore described those characteristics as consistent with manganese and said the town adds polyphosphate to sequester manganese; he cautioned that such sequestering chemicals add operational cost.

The presentation and questions made clear the council faces a tradeoff between minimizing short-term bills and maintaining system sustainability. “We have to make a decision. Do we want to go for the future of Stevensville or do we want to have green lawns?” one council member said during the discussion, emphasizing the long-term investment choices the council must make.

The council and staff said they plan further public outreach and continuing work on leak detection, capital planning and grant applications. The meeting record also noted the town paid about $124,000 to acquire additional water rights, a cost borne by the water fund and described as necessary for development tied to a pending outside development and related litigation.

Ending: Council members asked staff to continue reporting findings from leak detection and grant pursuits, and residents were encouraged to direct specific water-quality complaints to public works so crews can document and address problems.