Sultan to raise sewer rates

Published 6:32 pm Thursday, October 7, 2010

SULTAN — Residents could be pay an extra $13.85 a month for sewer service for the next two years.

Needing to pay a $1 million loan, city officials are proposing to the City Council to increase sewer rates. They’re bringing four options for repayment of the loan, raising monthly rates anywhere from $2.89 to $13.85.

“This is the worst-case scenario,” city administrator Deborah Knight said.

Even if the $13.85 rate is rejected, there would be a minimum monthly increase of $2.89, Knight said. The discussion on sewer rates is part of the 2011 budget discussion. The council plans to have a budget retreat at 9 a.m. Saturday in the council chambers at 319 Main St. The public is invited to attend.

The discussion for the sewer rate increase is planned for around 12:30 p.m.

The city has two years to pay the $484,000 remaining on the loan. Sultan has paid using reserve funds and connection fees, but these are depleted, Knight said.

The other pay options include using remaining reserves, but there would be no funding to repair a possible break in the pipelines or the plant for the next two years, Knight said.

The current rate is $64.83 for residential homes. There are 1,346 rate payers in the city.

Sultan received the five-year loan from the state Public Works Trust Fund in 2006 to start designing for a new sewer plant.

Under state law, the city had to start planning for the new plant after its current plant had reached 80 percent capacity. Originally, the city had planned to use funds from new development to pay and extend the loan to 20 years, but these did not happen after the economic downturn.

The council decided to postpone the construction of the new $18.5 million plant and instead, is paying for short-term improvements using state grant money.

Alejandro Dominguez: 425-339-3422; adominguez@heraldnet.com.