Project creates concern for rates

The state is not moving forward with funding the final large infrastructure project in Moorcroft, the Powder River Water project, without the town raising water rates to maintain its fiscal obligations with the added burden of the requested loan. Town Clerk/Treasurer Cheryl Schneider reported at Monday’s meeting, “In order for them to approve our application, the minimum that we would have to raise in rates would be close to $6.”

The council, recognizing the burden raising rates will put on residents, is trying to find other options to satisfy the state’s demand. While they may yet enforce a rate hike, the amount may be adjusted by alleviating some of the town’s debt load.

Ben Glenn, while absent from the meeting, had previously suggested paying off the remaining balance of a loan acquired in 2013 of $89,000.

Schneider advised the body, “If we could pay that off maybe we wouldn’t have to raise rates at all or minimally as opposed to $6.” She noted that the specific purpose tax approved in 2014 could perhaps be utilized for the purpose.

However, the ordinance that governs spending that money only encompasses “infrastructure”, not “retired debt”, so this is not a present option. Councilman Owen Mathews said, “On this next elect, when we consider our portion, we can consider some of that for retired debt. It is something that can be used in the future.”

There is approximately $300,000 in a savings account the town maintains for emergencies like the pump failure at the Madison well recently. Mathews opined, “We’ve been responsible enough with everything, I’m okay with that being the option for a purpose like this. I think it’s worth looking at and not putting that extra burden on people.”

Mayor Dick Claar was in full agreement: “I love to see the savings, but the savings are no good to you unless you use them. I think that’s the way we ought to move.”

Councilman Paul Smoot concurred, saying, “If it saves our residents $3 a month, I think it’s worth it. Our rates are high enough right now. We really need to be very cautious looking forward at any projects that are going to raise the rates beyond where they are now.”

The mayor directed Schneider to ascertain what the required rate increase would be if the debt was mitigated. With more information, the body plans to make a decision on this issue at their next meeting.