By Brian Mittge, The Chronicle, 3/28/2001
Centralia wastewater rates will increase in the next few months, but city councilors are still investigating how quickly to phase in the higher fees.
A proposal passed on first reading two weeks ago would raise monthly rates by 10 percent starting May 1, then another 10 percent at the beginning of 2002, 2003 and 2004.
Tuesday night's scheduled vote on the ordinance was tabled, however, leaving open the possibility of a larger, one-time increase.
Councilor George McCarty urged the council to table the motion so he would have more time to analyze an alternative proposal from Councilor Bill Moeller.
Moeller's plan would increase rates just once, by 27.7 percent, starting May 1.
This steep increase would hurt in the short term, argues Moeller, but over the long term would actually be much more reasonable than a series of four 10 percent increases.
With compounding, the series of smaller increases would actually result in total increase of 46.4 percent by 2004, Moeller estimates.
Current sewer rates are just under $35 per month for a typical family residence.
After the four proposed 10 percent increases, that family rate would rise to just over $50 per month in 2004. Senior citizens would receive about a $4 discount.
Moeller's up-front 27 percent increase would mean that rates would rise to $45 per month this year, and would stay consistent through 2004.
Rates would be re-evaluated at that time, and could again be increased or lowered, depending on the city's finances.
The sewer rate increases are necessary because the city, in a consent decree with the state's Department of Ecology, is required to build a new wastewater treatment plant by 2008.
The proposed $35 million plant will be located just south of the Thurston County border, and will be largely paid for with a $27 million zero-interest loan from the state.
The loan is on a 20-year repayment cycle, which means payments of $112,000 per month will commence four years from now. The rate increases are designed to move the city to a financial position where it can make those kinds of payments on top of the cost of running the new plant.
City officials reluctantly acknowledge that rate increases now are the only way to prepare for the cost of the new plant, but disagree on when and how much to pull that money from city rate payers.
Councilors agree that Moeller's numbers would shave money off the 2004 rates, but the ''sticker shock'' of the initial increase would be too much for citizens to pay, some councilors said.
''I'm concerned about hitting them with this kind of increase now. We know an electric rate increase is coming,'' said Mayor Pro Tem Carol Lee Neely.
City Light officials are waiting for word from the Bonneville Power Administration before announcing what could be a very large electricity rate increase for city residents later this year, said Finance Director Brad Ford.
In other business:
- Retiring police chief Toni Breckel received a commendation for his 31 years of service on the local police force, including almost 10 years as chief.
The proclamation called Breckel an ''exemplary gentleman who has distinguished himself in his profession.''
A retirement party is planned for this weekend, Neely noted.
- Councilors adopted a vehicle purchasing policy for city employees.
The policy requires detailed information for each proposed vehicle purchase, including soliciting at least three bids, along with price quotes from the state.
Brian Mittge covers local government for The Chronicle. He may be reached by e-mail at bmittge@chronline.com, or by telephoning 807-8237.
This page created and maintained by Chehalis River Council
Send comments or questions to the: Chehalis River Council