Commissioners agree to raise three utility rates

By LARRY KLINE - Independent Record - 08/19/08

Helena city commissioners on Monday night agreed to largely inflationary increases in several city utility rates, with commissioners saying they tried to balance the need to care for city infrastructure against the ability for residents — who already face increasing fuel, energy and food costs — to afford further increases.

The commission agreed to raise storm sewer utility rates by 6.35 percent; increase street maintenance fees by 4.1 percent; and raise residential and commercial solid waste fees by 2.81 percent. The raises will take effect in November.

The increases amount to about $10.30 annually for the average residential property taxpayer, Commissioner Alan Peura said.

Commissioners had considered raising the street fee by as much as 11.05 percent but chose the lower increase, which matches the rate of inflation, to lessen the burden on taxpayers who live on low or fixed incomes.

In the past several budget cycles, commissioners have considered raising utility rates to a level that would fund half of each department’s ongoing infrastructure- and equipment-replacement costs. Commissioners have increased some rates in years past but, like this year, have held back from proposed larger increases in order to lessen the impacts on property owners.

“In some respects, we’re passing these issues on to the future,” Mayor Jim Smith said, noting that he’d like to do more to fund the city’s capital needs. The commission at the same time feels a responsibility to ensuring rate increases are affordable, he said.

Commissioners were also scheduled to consider a 15.7 percent sewer rate increase and a 5 percent water rate increase, but the Independent Record failed earlier this month to publish the statutorily required legal notices advertising the proposals. The commission instead will consider those increases Sept. 22.

The water and sewer rate proposals represent the largest increases the city will make this year. Commissioners may choose not to raise the rates or may increase them by a smaller margin.

A resident Monday night suggested city officials consider implementing a local sales tax and an income tax, with the second item targeted toward people who work in Helena but live elsewhere.

Officials noted city governments don’t have the authority to pursue either idea.

Reporter Larry Kline: 447-4075 or larry.kline@helenair.com

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