Utilities are engines of growth, not barriers

To The Eagle:

Let me thank the Chamber of Commerce and our county commissioners for hosting last week’s “sewer summit,” and also commend The Eagle for its coverage of that event.

One issue that deserves more attention is the role of well-managed public utilities as engines of growth.

The Town of Cathlamet operates water and sewer utilities, each with service areas that extend beyond Town limits. These utilities allow development that would otherwise not be possible; homes can be built on lots too small for septic systems, or where drilling a well for water is not practical. Access to municipal water and sewer systems, as a rule, increases a property’s value and desirability.

Utilities are expensive to build, maintain and operate, however, and costs are magnified somewhat for small systems. The Town is now in the midst of a needed sewer plant replacement; how to fund this major public works project –and the best means for sharing the costs equitably – has been the focus of our work for several years already. I am happy to see the Chamber of Commerce engaged in the conversation, advocating (as it should) for local businesses.

I am nonetheless concerned with several aspects of the Chamber’s position.

First, it argues that high water and sewer rates are rendering Cathlamet a “ghost town.” The numerous home renovations underway speak otherwise, and the business community’s recent history – specifically, the closure of a gas station/mini mart on SR4 – shows that the lack of affordable access to needed utilities can kill businesses.

Furthermore, Skamokawa’s high utility rates have not impeded a remarkable revival; their base rate for homes is $80, to our $55, and their business rate starts at $110 (to our $55), yet they have a restaurant and two taverns and we don’t. Clearly, Cathlamet’s troubles have other origins.

Second, the Chamber’s recent position paper states that our local shops are being “regulated out of business,” presumably by the Town. No new regulations have been imposed that relate to either utility, and as an effort to mitigate the impact of higher utility rates we have lowered our hook-up fees from $3,000 in town each for water and sewer and $5,000 out-of-town to just $100 per utility (just enough to cover administrative costs of new accounts). So the in-town cost of building a home has dropped by $5,800, and the out-of-town cost by $9,800. To suggest that we have opted for anti-business policies when the opposite is true does a disservice to the Town’s elected leaders.

Lastly, the Chamber is completely within its mission to advocate for lower sewer and water rates for businesses in our community. I too believe a review of our rate structure is warranted. But the fiscal realities for both utilities mandate that every dollar deducted from the bills of one interest group must be added to those of other interest groups – or the systems will go bust. So, lower rates for businesses will mean higher rates for residents on fixed incomes, for large users like the school district, etc.

The best we can hope for is shared pain. Cathlamet’s utilities are suffering the consequences of several decades of ultra-low rates; politicians (and candidates) will always garner cheers by demanding low water/sewer/power rates, yet the only sustainable course for public utilities is to keep revenues up with costs, while slowly building a surplus for future capital expenditures.

That is what the Town is doing now. We can’t expect our customers to love the rate hikes. But we will strive to explain why they are necessary, and to never miss an opportunity to reduce costs.

George Wehrfritz

Mayor,

Town of Cathlamet