Superior water rate increase goes into effect July 1

Residents of Superior will soon see an increase in water rates of approximately 21 percent to the Base Rate Charge. The rate increase is meant to repay outstanding bonds, to cover operation and maintenance fees and to establish a reserve fund.

Dan Kramer with Montana Rural Water Systems Inc. gave presentations at a Mineral County commissioners meeting and the Superior Town Council in May about sewer and water rate structures prior to the decision to raise rates. There was also a public hearing scheduled for Monday, June 12.

Kramer stressed the importance of transparency when it comes to a rate increase. He encouraged the groups to hold public meetings in order to get their buy-in, explain the rate increase and give them the opportunity to discuss it.

“After doing the workshops, I’ve seen a difference in the attitude the public has toward the rate increases,” he said. “Because they have a better understanding of why the increases are necessary. They need to understand how a rate structure is done and how much money it takes to operate the system.”

During the meetings, he showed a spreadsheet which details the number of people using the system, anticipated capital improvement costs, the forecast for future growth along with usage estimates and what’s in the reserve fund. He emphasized the importance of setting a reserve goal for future costs as maintenance fees and costs increase.

“This is a living document,” he said about the spreadsheet, “It can be regularly updated and changed and so it’s always accurate. The benefit of it is that you can look at it at any time and see how you are doing. You can put any number into the spreadsheet and it will calculate what everybody should be paying. This is a tool you can use along with education needed to look ahead, its forward thinking.”

Kramer has been with Montana Rural Water Systems for nearly 12 years and works with communities on their rate structure using the spreadsheet.

“With public meetings, the townspeople realize that they have ownership and responsibility for the system. If we want to keep it up and want to keep it running then we need to make sure we have the money to do it. When they see the costs and the budget than they have a better understanding of why it costs what it does to pay for the system,” Kramer said.

There were ads in the newspaper, meeting notices were posted and it was posted on social media to encourage the public to attend the June 12 meeting. If people were unable to make it to the meeting or have additional questions, they can contact the town clerk-treasure, Brenda Schneider.

The town has two charges for residents. The Base Rate Charge per Equivalent Dwelling Unit (EDU) and a monthly usage charge. The proposed water increase, to take effect in July, 2017, will be $33.36 per Equivalent Dwelling Unit (EDU) up from $27.63 for a water line of ¾ inch. The monthly user charge of $2.27 per 1,000 gallons of water will not increase.

There will then be another Base Rate Charge which will go into effect in July 2018. It will increase 17 percent from $33.36 to $39.30 based on a water line of three-quarter inch. Again, the user charge will not increase.

Kramer said it’s important for the public to attend the meetings and so they have the opportunity for their input by the time the increases go into effect in July.