Lewistown's Water System: De Kalb's Report

&Quot;Lewistown's experiment in municipal ownership of public utilities may yet be a profitable one. It is extremely possible and, from the most gratifying showing made by the new system adopted May 1st, last, highly probable that within ten years Lewistown will have made a substantial step towards final payment of the bonded indebtedness incurred in the installation of our present water system. Whether or not it will prove to have been a profitable one, can best be judged from the other end of that period. If the wooden pipes used in the construction of the water mains are as durable as they should be, the city will find at the end of that period, a system yet in the first stage of its usefulness. If the pipes are in a state of decay, as some think they will be; or, if they are habitually springing leaks, as some portions of the system are already doing, then the experiment will have proven a dismal failure. Whether or not the system will stand the ever increasing demands made upon it, and its condition ten years hence, are matters of speculation, and present questions over which competent engineers will debate, so I shall pass the point without expressing an opinion of any weight. There are many who fear the system will be greatly impaired and decidedly inefficient at the end of that period. Let us trust otherwise, however.

"The taxpayers of the city of Lewistown should become highly interested in the conduct of the water system. Years hence a great many will have occasion to reproach themselves for the apathy with which they have viewed the manner in which it has been conducted in the past. That the methods employed in the past have been grossly inefficient is patent to anyone who knows of conditions as they existed prior to the first day of May, 1905.

Growth of the System.

"February 1st, 1903, our present alderman, H. C. Brown, had city water installed at his premises, and it is safe to assume that date as the correct date water was first used from the city mains. Since February 1st, 1903, to May 1st, 1905, there has been collected and turned into the city treasury water rents, the sum of $5,095.08.

"It is safe to say that hitherto the expense of conducting the water system has almost equalled the income. Out of the $5,095.08 must come approximately $600.00 for taps and curb cocks furnished by the city to consumers, which consumers are required to pay for, leaving about $4,500.00 as the total income from the sale of water since the installation of the system to May 1st, 1905.

Bonded Indebtedness.

"The bonded indebtedness of the city for the water system, and for that which must necessarily go with it—the sewerage system—is $60,000. This is represented by two bond issues, one of $50,000, due in 1922, the other of $10,000, due in 1923. The interest on the two bond issues amounts to the gross sum of $3,000 annually. It will be seen that there must be a great increase from the system in earnings, or the city will have to refund bonds when the present ones mature.

"On the 1st day of May, 1905, I undertook the almost herculean task of reforming the methods used in conducting the water system, and placing it upon a paying basis. It will be very interesting to the citizens of this city to know what has been done in the past, and what is being done at the present time. Some idea of the importance of rejuvenating the entire system can be gained by comparing the following figures;

"The average monthly income May 1st, 1905, was $188.70. The average monthly income from May 1st to the present time is $374.28. This last amount, under present management, will not decrease; on the contrary, there is every reason to believe there will be a handsome increase of revenues right along. The total income from May 1st, 1903, is $1,831.40.

Some Changes Made.

"As most of the taxpayers know, the present system used in the collection of water rents is much different than before. Under the present regime, the consumer must pay his bills in advance—the penalty for failing so to do being the deprival of the use of water. There is no extra cost from hiring some person to visit each consumer and personally collect the rents. That system entailed a needless expense and burden upon the water works fund, and under that system many escaped paying their dues altogether. The city, no doubt, lost a great deal of money because of that system of collecting.

"The entire system was carefully checked over by the city engineer at the beginning of the fiscal year, May 1st, 1905, and some were found who apparently were receiving a free use of water. New ratings were then made, according to data furnished by the city engineer and it was found that scarcely anyone was paying according to the schedule given in the ordinance controlling water rates. A very few were paying more than they should, but a far greater number were paying much less than the ordinance prescribed they should pay.

"At present there has been some needful red tape adopted. No one can make a connection with the water mains without first securing permission of the city engineer and paying in advance for such fixtures as the city furnishes. An application must be made in writing, and a licensed plumber secured to do the work. As soon as the work is completed and inspected by the city engineer, the water is turned on and a specific report made by the plumber as to just what the water is used for; whereupon the books of the water collector show a new consumer added and what he is charged for, a bill is at once sent him and he becomes acquainted with the business methods of the Lewistown water works. Thus the water system is growing from month to month; and if properly managed I have no doubt will become a source of great revenue to the city.

"The methods in vogue at the present time are, perhaps, not all they should be, but so many difficulties confronted me when I attempted to bring order out of the chaotic condition that I am gratified to think they are even as good as they are. One thing I feel proud of as a citizen and taxpayer, the city is saving every cent of income from the water system, and the records are in good and permanent shape. In a very few instances dissatisfaction has been evidenced at our methods; yet whenever a dissatisfied party was made to see how much more was being saved the city, than hitherto, and all because of those very methods, he generally was more than satisfied.

On a Firm Basis.

"The water selling business of the city is now upon a firm and stable basis; up-to-date business methods are used. A card index system was installed as soon as it could be ordered, and a set of bookkeeping adopted such as will enable the taxpayers to know just who pays and who does not; just how much is collected, and just how much is turned over to the city treasurer at each monthly settlement.

"It may seem to a great many that the system is decidedly unprofitable as yet, but time alone will tell whether or not that be true. In considering the profits derived, I have but set forth the revenues derived. But the city is receiving great benefit in other ways. Just how much in dollars and cents the fire protection of the water system is worth per year is a matter of speculation. It is considerable, however, and the citizens should not feel discouraged. I feel sure that by the end of the fiscal year those who have been viewing this public improvement with pessimistic eyes will become decided optimists.

"Still another thing I have not hitherto enumerated, which is still more difficult to reduce to a dollars and cents proposition. That is to say, the possibility of beautifying private properties by the use of city water. There are fifty water consumers in the city who have made great progress along that line, and many beautiful lawns, adorned with trees and shrubbery, are in existence, which were impossible before the advent of the water works. That is an item which must be reckoned in when we come to figure the profitableness of the system, for no one will dispute that the whole city is materially, perhaps pecuniarily, benefited thereby."