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Increased water fees create a splash

| August 18, 2018 3:00 AM

By CHANSE WATSON

Managing Editor

KELLOGG — The Central Shoshone County Water District created some waves recently after they informed their customers, by mailer, that they would by creating and increasing several different service fees beginning Oct. 1.

The notice also informed customers of a public hearing on Aug. 13, where they were invited show up and share their thoughts on the proposed changes with the Board of Directors.

And show up they did…

Close to 30 disgruntled customers filed into the small water district building in Uptown Kellogg Monday afternoon and took turns voicing their displeasure.

Customer complaints varied depending on their particular circumstances (some including specific projects), but many began as simple misunderstandings concerning when the fees apply. Several residents were under the impression that all of the fees would be monthly charges. This notion was quickly shot down by the board.

“Your normal bill is going to go up a dollar a month,” board member Joe Guardipee explained. “We raised it a dollar and we looked at every avenue we could look at to try and not raise the prices. Thats where we get some of these alternatives, rather than raise the price on the normal consumer.”

The “alternatives” Guardipee alluded to are the new fees (and increases in existing fees) that deal with usage overages or special work. These fees will only be applied to a bill if the customer meets the fee’s description. In other words, they are not new automatic monthly charges.

Upon hearing this information, the distraught crowd shifted their focus to what they believed to be the district’s failure in adequately explaining the proposed fees. One Kellogg resident cited the curtness of the notice they received — saying that it lacked descriptions of the proposals and explanations of where the money was going.

Chairman of the Board Duane Little admitted that the district could have done a better job with adding more details to the notice, but was content that they could clear up the misunderstandings at the meeting.

As for the explanations of where the money was going, the board had general answers, but few specifics. This led many to throw accusations that the water district was not managing their funds or construction projects properly.

Guardipee referenced several rising costs that the increased fees (and new fees) will cover including general maintenance, chemicals, electricity and employee overtime (when applicable). No specific cost numbers where mentioned.

The board did admit that they failed to keep a promise they made in 2016 when they told voters that their rate would not go up if they approved a purposed $4 million bond. This bond was passed by voters.

General contractor Shawn Truelove, who attended the meeting, voiced his concern with the lack of specifics in a later interview with the Shoshone News-Press.

“They say they need more money and they need to raise the rates and the fees — but I didn’t see any numbers, no justification,” he said. ”At the meeting, I asked three times, ‘what are the real numbers? Why do you need more money?’ and I never got an answer. Obviously, they are bad at budgeting because they need more money, so the budget doesn’t help me.”

Speaking of the budget, Little made it clear in the meeting that the district is fiscally bound to their yearly budget and cannot spend over the amount detailed in it. This purposed bond is published before approval in the legals for the public to see and comment on if they wish.

The water district later confirmed that all of their financial information including budgets, audits and expenses are public record and can be reviewed by visiting the district office.

As for the future of the rates and fees, Little answered a question put forward by a Kellogg woman by saying that the Board currently has no plans to raise rates in the future.

In an interview with the News-Press after the meeting, Little detailed out the specifics of each of the changing fees and rates.

- Off Service Fee (new) — $10 per month: This fee applies to customers who own land or a structure that is connected to the water line, but have shut off the water for an extended period of time. Little states that this fee ensures that the pipes connected to those properties are properly maintained. This has normally been a free service.

- Late Fees — increase from 3.5 percent of bill to $5: As it sounds, this fee applies to any customer who pays their water bill late. Little says that the current penalty of 1.5 percent (which he says evens out to 83 cents) does not even cover the costs of sending out the notices. He adds that the increase not only is more in line with other water companies, but it is also more of an incentive for customers to pay on time.

- Home Inspection/Vacation Rentals (new) — $35 per visit (on/off): This fee applies to customers who own rental properties, vacation homes or other properties up for sale that are connected to the water line, and wish to have that property’s water turned on/off/on or off/on/off in a short period of time. Little explains that this occurs when property owners are looking to show a property or rent out a property and only need water for a short period of time. The new fee is to offset the labor and equipment costs that are required to perform this task. This has normally been a free service.

- Overage Fee — increase from $1.79 per 100 cubic feet of water to $2.20: As it sounds, this applies to customers who go over their alloted amount of water for the month. The alloted amount for one month is 1,500 cubic feet of water, or around 12,500 gallons. Little says this increase in price is simply to cover the cost of producing the extra water.

- Call Out Fee — $75 to $100: This fee applies to customers who call for water maintenance during non-business hours. The increase is to cover the cost of paying the employee’s overtime and equipment costs.

- Tax Rolls Admin. Fee (new) — $75: This fee applies to customers (or former customers) that have not paid their water bill or outstanding balance in more than three months. $50 of this fee is for the water district and $25 is for Shoshone County to cover the cost of sending the delinquent account to the tax rolls. The water district has normally covered the costs of sending the account to the tax rolls.

- Standard water rate increase — 3 percent (or roughly $1): This is the only new fee/rate increase that will affect all Central Shoshone Water District customers. As previously mentioned by the board, the rate increase is set to cover increasing expenses with operating the district such as general maintenance, chemicals and electricity.