Water rates increase coming for town

At the March 28 meeting, the Basin Town Council addressed the need to increase water rates for residents.
The town was notified of a 10% rate increase from the Big Horn Regional Joint Powers Board effective July 1, 2024. The current rate the town pays is $11.50 per equivalent dwelling unit (EDU). The increase would change the EDU to $12.65.
The council discussed whether the town should pass along the increase or increase the rate by more than 10%. Councilman Brent Godfrey stated, “When we passed it (an increase) two or three years ago, we told them there wouldn’t be another increase.” He continued that since the town’s rate has increased, the town needs to raise their rates so it can make money.
Duncan replied that the issue is about more than making money. It’s about building reserves and planning for the future. “For too many years Basin was run on ‘just make enough to get by.’ We have issues like a 100-year-old water system we are trying to find money to fix.” He also mentioned sewer problems that have existed since 1963. He acknowledged that any increase will be painful, and he doesn’t want to charge any more than the town has to.
Godfrey stated that the town used to have good streets, but they are deteriorating. He added that a 1% sales tax was partially diverted.
Basin’s town attorney, Kent Richins, will draft an ordinance for a rate increase.
UTILITY NON-PAYMENT CHANGES
The council reviewed Worland’s ordinance regarding utility liability on rental properties. Worland’s ordinance reads that “The owner of the real property is liable for all charges for sewer and water services on the said property. If the city is unable to collect the charges for service from the occupant of the real property, the owner of said property shall be given written notice, which shall be sent to the address shown on the County Assessor’s tax rolls.” The ordinance was provided by Basin’s town attorney Kent Richins.
Also noted in the city code was the policy on delinquent accounts and discontinuance of service for failure to pay a utility bill.
Duncan said that the Town of Basin not getting paid for rental property utilities is a big enough problem, it needs to be addressed.
The Town tried to clean up the issue a few years ago. Delinquent notices were sent to the occupant and the landowners. This worked at first.
Councilman Chuck Hopkin asked that if the town adopted a similar ordinance, 1) Would the landlord have the ultimate responsibility for the bill? and 2) Can the town shut off the utilities until the bill is paid?
Richins answered that there would have to be due process, but yes, that is where the ordinance is headed.
The council also discussed raising the deposits to the town on rental properties. Richins recognized that renters will also have to pay deposits for other utilities like natural gas. “I don’t really want to raise those rates. On the same token, we have a responsibility to protect the people that pay their bills on time.”
He continued that some landlords read about the issue in a recent paper and reached out to him. They didn’t like that they as landlords would be responsible for the bills, but once they saw that the town has written off nearly $18,000, they understood the position of the town. The non-payment is costing taxpayers; if the town is losing money on one utility, it has to raise rates on another utility to make up the loss.
Richins will pen a new ordinance for the council to review. Duncan hopes that landowners will attend a council meeting to discuss their opinions on the changes.
OTHER BUSINESS
• Jennifer and Tom Olmstead appeared before the council to discuss the possibility of placing a food truck, gazebos and a storage shed on a vacant lot on C Street. They are considering buying the lot for this purpose.
• The council discussed the fair board using the town’s vac trailer for pig wrestling. The mayor abstained from the discussion. The council discussed options and voted to allow the fairgrounds to use it if a town employee runs the equipment.
• Open burning in town is set for April 1 through May 12, 10 a.m.–4 p.m. Raw water will not be in until later in April. Residents are reminded to have a water source readily available, and no smoldering overnight is allowed.
• A motion was made to increase the fee for attachments to the town’s electrical pole. Those include TV, Internet, etc.
• Jesse Frisbee from Eagle Engineering presented an updated sketch and cost breakdown for a proposed parking lot on the west side of town hall.
• Councilman Carl Olson brought forth a discussion about rental space for South Big Horn County Water District. He said the district is trying to do their budget and they were inquiring about the rent the town charged the district for storage.
The council decided to work with the district to build a wall between their space and the town’s. They proposed charging the district $200 a month for the rental of the space.
• The council declared April as Child Abuse Awareness and Prevention Month.
• An executive session was called to discuss personnel.