BILLINGS - The city council voted 9-2 not to increase residential water rates for fiscal year ’26, which starts on July 1.
“The motion is for approval of the recommended rates,” said Mayor Bill Cole. “With the exception of the wastewater rates of the at least temporary removal of schedule one dealing with the wastewater rates to come back at some uncertain date in the future with the public hearing to be left open in the meantime.”
Residential rates will increase about two percent in the following fiscal year starting on July 1, 2027.
“You'll see the multi-family too was set at zero percent for both years and non-residential needed the increase in the first year, but not the second year as well,” said Jennifer Duray, city of Billings deputy public works director.
In March, the city council stated it did not want to increase residential water rates next fiscal year but will make increases next year.
“What's driving the rate increases for water and wastewater is really inflationary increases as well as trying to increase our pipe replacement spending,” Duray said.
The proposal calls for no increase, mainly to residential and multi-family rates.
Par Montana's attorney raised some concerns about proposed increases in wastewater rates.
“Par respectfully requests the city council table all wastewater rate decisions, including for retail customers, until all wastewater rates can be set,” said Vicki Marquis, a partner with Crowley Fleck. “Retail and wholesale rates are tied together.”
And the lawyer for Phillips 66 also raised some issues.
“We're here tonight with a very narrow request, and that is we are asking the commission to defer any decision on retail and wholesale wastewater rates until a later date,” said Scott Mitchell, senior partner with Holland & Hart.
“I think we owe it to our community to be good partners with you as huge economic drivers in our community,” said Councilman Scott Aspenlieder. “But you owe it to our community to be a good partner back and, and pay your fair share in the rates. And there is probably somewhere in the middle here, so I'm willing to let the staff try to work that out.”
And some talked about other parts of the proposal.
“And I think that before we ask anybody to have an increase in the residential rates for the water or the wastewater, I think we ought to make sure that the billing process is new software that the City of Billings Public Works has actually implemented last June or July is working correctly,” said Brian Gouldsberry, Billings resident.
An audit released in February showed the city was not at fault for the problems with the high water bills.
