Town Council Discusses Rate Changes On Water, Garbage

The Broadus Town Council met with Bobbie Shular of Montana Rural Water Systems, Inc. (MRWS) last week to discuss a rate analysis that she completed on the Broadus water system.

MRWS is a Great Falls based association providing training, regulatory updates, rate structuring, and technical assistance to Montana entities with drinking water and waste water systems. The Town of Broadus is a member of MRWS, and as a result the rate analysis was a no cost benefit of membership. The analysis combines the expenses, assets, and any loans associated with a water or sewer system, and looks at it in comparison to the number of users and the fees being charged to come up with a number of how much an entity should charge to fund the system.

Shular described the reasoning behind the funding, noting that Montana Law says that rates need to be fair and equitable, while the systems must also be self supporting.”

That is to say, the town’s water and sewer systems (as well as garbage/dumpster service) must be paid for by the money generated from fees for those services.

The rate analysis found that Broadus is currently falling behind on the money it brings it for water and garbage in order to pay for the services.

Discussion at the meeting centered on what those rates may look like going forward. Several options exist in terms of how an increase in fees may look on the consumer’s bill.

In order to pencil out, the current $23.86 base rate for water would need to be increased to $31.21 in order to break even, according to discussion held at the meeting. The base rate for dumpsters is a bit more convoluted, with rates of 10-12 dollars for a personal dumpster needing to increase around $6.53 in cover the operating costs. Those combined increases would be around $13-14 per customer, if everything is implemented as discussed.

The sewer system currently pays for itself following updates to the system and a loan which increased rates by around $13, in 2019.

“Costs keep rising for everything involved with these systems,” Shular noted as she discussed the issue. “Water and sewer are the circulatory system of your community, and you have to keep them healthy to have a healthy community.”

The exact amount of increase is yet to be determined, but a special council meeting this week will look into the issue. A public hearing will also be held before an increase is made.

For folks who may be on a fixed income and have trouble paying for the increase in costs of services, several options exist to help.

In years past, the Low Income Home Water Assistance Program helped with water bills, but Tammy Jackman of the Broadus Senior Center, who helps guide locals through the assistance programs, told us that funding for that program had run out.

Several options currently remain. One major program is the Low Income Home Energy Assistance Program, or LIHEAP. This program helps with winter energy bills, and is based on income and resources. A large number of Montanans qualify for the program. For instance, for a single person household, the annual income threshold is $28,136. For a family of two, it’s $36,793, and a family of three the limit is $45,450.

Current data from the Federal Government indicates that in Powder River County, of the 1,725 estimated residents in 2022, 11% lived in poverty, or making below $14,580 per year for a single person household.

The benefit amount for LIHEAP is based on a variety of factors including household members, heat source, and income. Jackman told us that in her experience, the program covers a substantial portion of home heating cost for locals, and is well worth applying for if a resident qualifies for the program.

Another program is Energy Share of Montana, a nonprofit which helps Montanans with keeping the lights and heats on for those who may be in need.

Anyone who may be in need and who may qualify for these programs is encourage to contact Jackman at 436-2635.