City Council Meeting                                                                                                 Townsend, Montana April 21, 2026

Call to Order:  Mayor Rauser called the meeting to order at 6:30 p.m.  In attendance are council members Nate Brown, Angie Wintrow, JB Howick, Vivian Boaz, and Peter Simon. Also attending are Mason Schmitz, Nicole Simon, Brenda Banks, Mike Philpott, Katie Schols, Amanda Stiles, Linda Legar, Sharon Davis, Jerry Davis, McKenna Gregg, Larry Gibson, Will Parr, Cassie Parr, Amanda Hazelett, Dan Hazelett, Eric Crusch, and Kari Williams. 

Public Comment:  McKenna Gregg stated she was here to discuss the new water system.  Mayor Rauser stated that it’s on the agenda, so she can speak at that point. 

Minutes from April 7, 2026:  Peter made a motion to approve the minutes as presented.  JB seconded the motion.  All in favor, motion carried. 

GUESTS/CORRESPONDENCE

• Jim Beck spoke on the water flow in the wells from January 1, 2025, through January 1, 2026. 

Well #3’s flow measurements appear inflated, suggesting meter inaccuracies; peak summer flows are likely underestimated due to measurement errors. Lift station and lagoon outlet flow generally aligns since new devices were installed; discrepancies attributed to data entry errors or evaporation in late summer. Total well pumped water exceeds sewer outflow during summer due to outdoor water use, while minor December discrepancies lack explanation. Riverside channel monitoring focuses on low-flow periods (July–August); dam releases influence river flows, sometimes bypassing the side channel. Regulatory and environmental concerns are that low flows could prompt Department of Environmental Quality (DEQ) scrutiny, though current permits don’t require continuous side channel discharge. DEQ has historically supported alternative discharge points, but maintaining existing flow is seen as responsible. Contingency plans include using low-head pumps or learning from Montana Ditch’s gravel excavation method to enhance flow. Groundwater monitoring of the three monitoring wells: dewatering well (blue line), former fuel spill site near pool (red line, monitoring began August), and Lutheran Church well (reference only). Elevations for two wells are confirmed; pool well elevation estimated via groundwater contours. Proposal to allow developers southeast of town to install and monitor a shallow well to assess local impacts.

• Letter from Katie Schols/Water System Activation, Public Notice & Resident Impact: 

Mayor Rauser read the letter that was addressed to her and the council.  Mayor Rauser stated that the water project was driven by a 2022 engineering report identifying insufficient storage (200k gal vs. DEQ-recommended 1M) and low pressure. DEQ requires adequate emergency supply for fire protection and critical facilities. Public concerns focus on rising costs ($104.47 to $174.93 per month), lack of communication, and homeowner impacts. Residents criticized minimal outreach about required pressure-regulating valves, leaving many unprepared, however notices were sent out to each resident and information was posted to the City’s website and social media account.  Mayor Rauser stated that the funding contributions are as follows:  City secured $11M through the State Revolving Fund (SRF), with up to $5M forgiven, the largest such forgiveness in program history.  McKenna Gregg asked why the City did not pursue federal earmarks through Senator Jon Tester and Tim Sheehy. Mayor Rauser stated that the City applied for everything they knew was available at that time, including ARPA (American Rescue Plan Act of 2021).   Amy Peters asked if the various developers were contributing to the water bill?  Mayor Rauser stated that there are no impact fees, however, once they hook up to City water, each resident will pay standard rates that will help cover debt service. The plumbing and pressure risks are as follows:  The system pressure will rise to 75–78 PSI—near average but concerning for older homes.  Public works director, Eric Crusch, expects minimal issues, although aging galvanized pipes may leak.  Part of the water project included 37–47 fire hydrants and valves have already been replaced.  Council members, including Mayor and various council persons live in 1900 homes and share in the residents’ concerns.  Several members of the public said they were concerned about the elderly and low-income residents. Purchasing a pressure regulator and having a plumber install it is a big cost that was not expected.  Councilman JB Howick stated that Townsend Hardware sells pressure valves at cost plus 50¢.  Also, the Townsend Rotary Club is developing an assistance program;  and external donors are considering offering free valves.  Helping Hands and the Broadwater Food Pantry are considering partnering to offer assistance with the pressure regulators to those in need.  Some other communities in this situation have relied on community foundations, so that may be an option as well.  Councilman Simon stated that there are communication problems that continue to get the necessary information out to every resident.  There is low public meeting attendance, and many residents don’t receive the newspaper or have social media.  There has been a vacant seat on the council for over a year and a half, reflecting disengagement from the community.  Even notices on the printed bills are ignored by many, and some members of the public stated that the flyers and social media posts are insufficient.

The City’s Public Works is helping residents locate curb stops and shut off valves.  It’s not necessary to hire a plumber if there are residents who are mechanically inclined to put on the pressure regulator themselves, however the City staff does have the names of several local plumbers with their phone numbers if residents call and ask.  Residents were informed that the pressure increase will be phased as the new tower will be filled gradually over 48 hours in June, tested, drained, and then fully operational in August.  It’s been requested that the City send out another round of  notices with the specific dates planned so residents can prepare exactly when the water will be tested and increased to full capacity.  Several members of the public requested the water project budget.  Mayor Rauser stated that there are approximately 900 water accounts that contribute to the fees collected to pay the debt. The final budget and cost allocation will be transparently shared. The final rates depend on the current rates being paid for at least a year to make sure the City can pay the bond.  A reduction in water rates is possible after that time. Mayor Rauser stated that a 30-year bond was chosen over a 20-year to reduce rate shock, even though more interest will be paid.  The water tower will be painted a tan/beige color with the city logo artwork on it. 

CURRENT

• July 4, 2026, an event proposed by the American Legion to host a parade and various events at Heritage Park. The parade route will be on Broadway/Front, with a partial closure of Hwy 287 and South Pine Street. JB made a motion to approve the event pending insurance and the specific route and traffic plan for the parade and street closure.  Peter seconded the motion.  All in favor, motion carried. 
• Audit Engagement for the City’s audit for fiscal year 2026.  The City has had the same company for seven years.  Angie stated that she sat in on the audit interviews for several years, and the auditors at this company seem knowledgeable and explain everything well. JB made a motion to continue with the Nexus auditing services for one more year.  Angie seconded the motion.  All in favor, motion carried. 
• The Fire MOU—Mayor has not drafted that yet, so will be tabled
• The No-Parking zone was requested by Lakeside Distillery owner. It is needed for loading.  Eric stated that a sign is necessary for the no parking zone with the curb painted yellow.  JB made a motion to approve this.  Vivian seconded the motion.  All in favor, motion carried. 
• Massa Park lease agreement needs to be revised. The removal of a clause that states the tax payments and assessments are to be paid by the City.  And then adding a clause that states the signing authorization on the lease agreement binds all persons comprising the owner of the property, since several co-owners are out of state. JB made a motion to modify the contract as stated.  Vivian seconded the motion.  All in favor, motion carried.  Jeanne Steele stated that the property boundaries are only about six inches on the Bread & Butter’s side and the remainder is the park’s. She stated this because of snow removal on the sidewalks falling mostly on the City while maintaining the park. 

PENDING/CONTINUING

• Wage Salary matrix is still being worked out.
• Ordinance review ongoing (Titles I, II delayed one month).
• Telecommunications ordinance under review by staff and council and received a proposed ordinance from the city attorney. 
• Animal control ordinance assigned to committee (council members Peter Simon, and Vivian Boaz). Public input is encouraged.
• A question from the public was asked how ordinances are enforced.  Mayor Rauser state that we have a part-time compliance officer that handles enforcement.  Warnings precede citations.  It was pointed out that there is low public participation in ordinance reviews unless it’s a controversial subject. 

ROUND TABLE

• Parks and sprinkler systems to be assessed in June for pressure needs.
• Boundary markers removed during state repairs and not replaced.
• Fire department trained in wildland firefighting; new recruit Mason using others’ gear for training.
• Angie and Peter both stated that there is dangerous driving at crosswalks reported (near dental office, Deep Creek); near-miss with child prompts discussion of flashing lights or four-way stops.  Eric stated that there needs to better enforcement and tickets issued.  Bozeman plans to install 400 stop signs to help with traffic control.
• Nate stated that the Sign at the corner of the Forest Service and Post Office blocks stop sign visibility; issue to be raised with highway foreman.
• Kari stated that the Audit Report is available for anyone wanting to read it.

ADJOURNMENT

Nate made a motion to adjourn the meeting.  JB seconded the motion.  All in favor, motion carried.  Thanks for all who attended!