Manderson water/sewer rate increase on hold

The Town of Manderson held a special budget meeting on Feb. 15, and one item discussed was a possible increase of town water rates for residents. After an extended conversation, the matter was tabled.

The Town had received a notice from the Big Horn Regional Joint Powers board about increased rates of water it provides to the town. Mayor Rod Patrick asked for clarification about the notice, as he was not part of the discussion at a previous meeting. Councilman Troy Chambers gave Patrick a summary of the discussion.

The current rate is $11.50 per EDU (Equivalent Dwelling Unit). According to the notice, the rate would increase by 10% to $12.65 per EDU as of July 1, 2024.

The notice also stated that the gallonage charge would remain at $1.05 per 1,000 gallons or a fraction thereof per month as may be required by the board.

Mayor Patrick reviewed a statement from the water board for clarification. He relayed current Town financial activity: $449 to SLIB for a loan payment, $122 in reserve, $444 to OAM and $851 to BHR. He was unclear on what the OAM charge was but did note that BHR was Big Horn Regional. The BHR charge was said to be “for the line up to the cemetery and down. And connected to that water into our tank because I think Regional paid for that. We’ve got to pay that back. I had no idea what this was. If they are raising us 10% and it is the OAM, it would be $444. But I don’t think it is that.”

Councilman Tim Patrick reminded the council and mayor that the state auditors stated that the Town must establish a reserve account.

“We can’t build a reserve with what we are currently bringing in. Because we still have a lot of past due payments that have not been paid,” he said. 

Councilwoman Julie Williams added that the town’s expenses were going up too.

According to Councilman Patrick, the cost of fixing the fire hydrants and a recent water leak has added to the town’s expenses. “My personal opinion, $8 would be the minimum raise (to resident water bills) across the board. This rate increase would be added to the minimum flat rate each resident is charged.” He believes $12 would be better for the town, but he understands any rate increase will be tough for some.

Mayor Patrick shared that the Town hasn’t raised water rates in a long time. “Legally we’ve got to have a reserve account for the water. We have zero in reserves. If we have a leak that we can’t fix, we’re screwed.”

Mayor Patrick pointed out that the Town is still paying for EDUs on taps that have been shut off. The only way to stop being charged by Joint Powers is to dig the tap up and plug it. “But then Joint Powers threatened that they would raise the price of an EDU to make up for that.”

Councilwoman Judy Bury reminded the council that the auditors directed the Town to charge late fees on the bills. The Town hasn’t done this in the past. Williams said the
town ordinance states that water bills must be paid by the 20th of each month.

Councilman Patrick wanted to make a motion so the ordinance change would have its first reading at this time. So, he made a motion to charge a $10 late fee and an $8 rate increase on the flat rate. Four dollars of the rate increase would go on the water portion of the residents’ bills. The remaining four would go for sewer.

Clerk of Court Janet Reasoner read to the council a town ordinance regarding late penalties. It noted, “Said penalties to be determined by the town council at its annual budget meeting.”

Mayor Patrick stated, “We can either do it at a budget meeting which takes three readings, or we can do it in a form of an ordinance in three readings. If I’m not mistaken. That’s the way they always told me how it works.” 

Councilman Patrick said that in all the ordinances it states “to be determined during the budget session.” He asked Reasoner how she interpreted the ordinance she read. She responded that there was no other provision other than to do it in a budget meeting.

Councilman Patrick said, “So we’ve got to have three readings. This is our first budget meeting, so we do our first reading tonight, then our other two readings at the next two budget meetings. Or every how many times it takes us to get to a second or third reading.” Reasoner asked if the council was going to do a first reading of the complete budget at this meeting. Patrick responded that they wouldn’t.

Reasoner said, “I would say you can have the discussion and put it in the minutes that when you are preparing the budget, this is what you want to include. You can have that as a motion so that you all vote on it.”

Mayor Patrick replied, “In the meantime, I’m going to ask the clerk in Powell and the clerk in Greybull, because unless they changed it drastically, you can do it in the form as an ordinance. It doesn’t necessarily have to be through the budget session.”

Councilman Patrick noted it would be nice to receive some guidance. The mayor agreed. He didn’t want the Town to do it incorrectly and then get in trouble. 

“I don’t know that our attorney could really give us the answer that quick,” he said.

Councilman Patrick concluded that there would not be a reading of the full budget at the meeting. Williams decided to look closer at the numbers to find out for sure how much income the town is receiving from the water bills they send out vs. how much the town pays for water.

The motion to increase the water bills was tabled. The mayor asked the council if all were in agreement on the proposed increases to the water rates. The council agreed.

OTHER BUSINESS

• The council moved to open a bank account labeled Special Criminal Account per a State Statute/Supreme Court rule regarding municipal courts.

• The council made a motion to send Councilman Patrick to the Wyoming Association of Municipalities conference.