City may be looking at more utility rate hikes
August 28, 2011
After a city council meeting August 8, the Bonners Ferry City Council may soon be looking at further rate hikes to maintain and upgrade an aging water and sewer system after a bleak report by superintendent Jim Fritsche.

"The infrastructure is aging and needs to be replaced over time," Fritsche told the council, "and in order to maintain the services the public has come to expect the city needs to have funds in reserve to keep the infrastructure upgraded."

The city gets most of its water from Myrtle Creek, and the Kootenai River is a back up source, which had to be brought on line following the 2003 Myrtle Creek Fire, but the water system allowing use of that back up source, Fritsche said, is not up to par.

"The river pumps are old, the river has debris and the pumps would not last due to the debris," he said. "The river water is also dirty so it must be treated differently than the water from Myrtle Creek. It is difficult to treat and takes a long time."

In addition, steel water tanks are deteriorating and will need to be replaced.

Those on city water saw a large rate hike last year for needed repairs and upgrades, but Fritshe recommended the council plan for the future by having smaller rate increases spaced out over time. Mayor Dave Anderson asked if a funding reserve should be established, Fritshe said such a fund should be done to help replace infrastructure that is deteriorating, but said it doesn't take long to spend a reserve.

Councilman Mike Klaus, himself an engineer, said the city tends to go along on a flat line for a long time as regards infrastructure improvements, then sees a large jump in costs as repairs and upgrades become critical.

"The water plant can be compared to a 1958 pickup," he said. "Not too many people drove a 1958 pickup to the meeting tonight, and if they did, they would have had to put some money into the vehicle to keep it running."

He said it would be due diligence on the city's part to try to keep up with inflation through smaller rate hikes so as not to place such a burden on the community.

No decisions have yet been made, but the council will be looking more closely into the issue in the weeks and months ahead.