Town water, sewer rates are going up

Rates for customers of Town of Cathlamet water and sewer utilities may soon rise.

Faced with accountants' predictions that the utilities' operations aren't sustainable under current rates, the council agreed Monday to develop new rate schedules for the two systems.

The town's sewer system fund will probably end the year in an $85,000 shortfall, officials reported. The town will be able to use fund reserves to cover the shortfall, but the reserves will be depleted in 2017, they said.

Public Works Director Duncan Cruickshank presented an analysis of both sewer and water rates and said it appears that an increase of 40 percent is needed to make both systems solvent.

"Every month we don't do something, the numbers get worse," said Cruickshank.

Besides increasing rates, the council should look for new revenue by auditing customers and connections to make sure each is paying for their consumption or usage.

And with the sewer system, there is the potential of gaining new connections in the Rosedale area.

Cruickshank concluded his analysis with the recommendation that the council increase water rates 40 percent "as soon as they can tolerate" and include annual increases after that, possibly around 5 percent.

Sewer rates also need to go up at least 40 percent, combined with an increase in the base charge and efforts to increase the number of connections.

"The council has a fair amount of latitude in setting rates as long as it treats each rate class the same," said town attorney Heidi Heywood. "Under state statutes, water rates must cover the full cost of operations; sewer rate statutes are not as specific."

Statutes also require town staff to review rates annually and make recommendations to the council for

adjustments.

"That's supposed to be done on an annual basis," she said.

Also, the council can undertake a rate study at any time, she said.

Council Member Andy Lea commented that the council, if it undertakes a rate study, should commit itself to following through with the study's recommendations.

"The last time the water rates were increased was in 2009," he said. "What cost has remained the same since then?"

In 2011, the council received a grant to fund a rate study, which made recommendations for a 9 percent water rate increase, but it was never implemented, Lea said.

"It's us, the council, that's responsible in not keeping up the rates," he said.

Council members agreed with Lea's recommendation to do a rate study and develop a proposal for new rates.

"The boat has been missed in the past," said Council Member Dick Swart. "I agree that we should move forward."

Lea and Swart will meet with town staff to analyze reports and rates. Once they have a proposal, they may call a special meeting of the council to go over their recommendations.

The numbers are complicated, they said, because previous town officials applied numbers differently than under the current accounting.