SULTAN — Out of options, the city has turned to its last hope to pay off a state loan for a new sewer plant.
Ratepayers will carry the burden for the next two years when they see their sewage utility bills go up.
“It’s a bad idea but we don’t have any other choice,” city administrator Deborah Knight said. “We did consider all the other options before going to the ratepayers.”
Residents also will see increases in other utility rates, which were approved years ago.
The City Council approved the increase in sewer rates at its Thursday night meeting with a 4-2 vote. Councilmen Sam Pinson and Joe Neigel voted against delaying the $1.25 a month storm water rate increase until June.
In 2011, ratepayers will pay $6.64 more on their monthly bill. This would mean the residential rate jumped to $71.47 from $64.83. The rate will increase another $3 in 2012.
The increase is needed so the city can pay a $1 million loan from the state Public Works Trust Fund given in 2006. The loan was used to start the design for a new sewer plant, but because of the economic downturn, construction of the plant was canceled.
The city still has to make two payments on the loan in the next two years. The city needs to pay $210,000 in 2011.
The council decided to use $30,000 from the sewer fund reserves, reduce its operating budget by $50,000 and use an estimated $56,000 in connection fees to make next year’s loan payment.
Even so, there was still a $106,000 hole, which the 1,347 ratepayers will fill next year.
Using money from the reserve fund and operating budget brings risks. The city was planning to replace parts of the current sewer treatment plant but now that is postponed. Also, if there is a pipe break or other emergency, the city would not have money to fix them, Knight said.
Alejandro Dominguez: 425-339-3422; adominguez@heraldnet.com.
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