County residents who purchase water from bulk water re-sellers may find themselves greatly impacted by a proposed change in rates that will be considered by the Billings City Council during their meeting on Monday.
The owner of one of the city’s three re-sellers, Jeff Essman, who owns No Cash Water, told the Yellowstone County News he is very concerned about a change in policy and a steep increase in rates that the council is considering.
They are considering raising the rates to re-sellers, who usually pay commercial rates, by 36 percent this coming year and another 25 percent the next year.
Essman said that the opinion that some city council members have expressed is that the city is subsidizing county residents with water rates that are too low. He said that the City Manager has said that they want to provide a disincentive to those who want to live outside the city.
Essman said that he finds it hard to believe that anyone would think that having to haul water isn’t disincentive enough. “Hauling water is difficult enough and costly enough as it is,” said Essman, “if these people didn’t want to live in the country for the space it gives them from neighbors or for other reasons they wouldn’t be living there. They are very determined people who want to live in the country.”
No Cash Water Service sells metered water to customers which Essman purchases from the city at a commercial rate which is higher than residential rates in the city. He has been in business for 15 years providing some 125 to 200 customers metered water service. He said that there are considerable costs involved with providing the service, and he most recently invested $60,000 to improve the service by reducing the time people have to wait in line.
Besides No Cash Water, there is also Reliable Water Service and Fisher Water Service in Billings who provide bulk water to customers. Another company, Pioneer Water Service, is also in the business, but they purchase their water through the Heights Water District. The city has no direct control over them, said Essman, but he said he would suspect they will be “coming after them.”
Essman said that if the city wants a change in policy, they should go through the state legislature, which has approved subdivision regulations that allow for development in rural areas without water sources as long as there is a water hauler who indicates that they are willing to provide the service. “It isn’t right that the city should change a policy that people have been relying on for 30 years,” he said.
State statutes require that a city’s rates must be “just and reasonable,” explained Essman. ”I have asked the public works director for the analysis that the three bulk water sellers deserve to be carved out from the other commercial customers…the only thing she has sent me is a video of the discussion of city council members.”
