Town Council Discusses Rates

An increase in water and possibly sewer rates may be imminent for residents in Whitehall.

At the Monday Town Council meeting, Mayor Dale Davis said the State of Montana Board of Investments would not let the town apply for the bonds or loans until the town has paid off a previous loan from a $59,000 bond issued in 1997 for a water project. The last payment is $6,400. Currently the town has $5,800 in the reserve account for that payment and will be looking at the budget to make up the $600 needed.

Requirements made by a bond counsel for rate increases must be set to generate net revenues to cover debt service by a factor of 1.25. The Board will require a reserve account (one year debt service or 10 percent of the loan, whichever is less).

“We know we are going to have to go out for grants and loans for this water problem,” Davis said.

Town Clerk/Treasurer Summer Fellows said the town would have to go through a bond counsel for the loan on the water meters. Fellows said she was hoping to be able to get the loan without a bond counsel, but unfortunately that is not the case.

“Bond counsel said you (Town of Whitehall) will not get any money from us unless there is an increase with water, and chances are there will be a little increase with the sewer as well, “ Fellows said.

Fellows said the bond counsel will give the rate increase to the town and that is what they are paying them for. Mayor Davis said the council may have some answers by the next meeting as to where the rates need to be set forth by the bond council. Council anticipates needing to set forth a public meeting before the next regularly scheduled meeting.

The Water, Sewer and Garbage Committee reported letters would be sent out about changes to the way some residents or businesses are currently being billed for their garbage service. The $2 increase set forth by the council last year will still be in effect for this year, Fellows said.

The town ordinance states every resident that lives in a dwelling should be charged, including dwellings with multiple residential units, Fellows explained.

“We have to make it fair across the board commercial and residential service. We will still be looking at how to make sure commercial/business service can be fair and hopefully have something put together for early next week. There is going to be some people that aren’t real happy with that unfortunately, but they can look at as they got all these years for free,” she said.

Davis said this won’t affect single residents at all because they have been paying for one, but for rentals with multiple residents they will no longer be charged as one unit.