Print
E-Mail
tool name
closeCity proposes rate increases
Nate Hulings
of the Gateway
The City of Gig Harbor is expected to increase rates for water, sewer and storm services over the next three years.
The City Council got its first look at proposed utility rate increases for 2010-12 at Monday night’s council meeting. The rate increases, proposed in three-year stages to line up with bond payments, range from 3 to 17 percent.
Rate increases are needed mainly to fund projects, including replacing aging water lines, waste water facility construction and the marine outfall project, city finance director David Rodenbach said.
By 2012, the average monthly rates for all three utilities combined will increase from the current $81 to more than $120 — a yearly increase of $480.
Proposed water rates will increase 10 percent for the next three years.
During the course of the three-year hike, the increase will provide about $670,000 in additional operating revenue for the city.
Original estimates found that the city would only need to raise rates 3 percent each year. But with scheduled replacements of aging waterlines and the proposed $8 million marine outfall project, rates had to jump to meet demand.
“That is the major reason for rate increases for water,” Rodenbach said. “The rate increases will get us to where we need to be.”
How does an annual 10 percent hike look on your water bill? Current residential water bills average $23.18 a month. By 2012, the same usage will cost $30.86.
If the new water utility rate is passed, the base charge for residential homes will increase from $11.34 to $12.47 per month.
Sewer
Proposed sewer rate hikes of 15, 17 and 10 percent over the next three years will raise the average resident sewer bill to $69.30 by 2012 and create $2.25 million in additional revenue for the city. The rates will be used to fund lift station replacements and facility construction.
“Our lift stations are Band-Aided together in an awful state,” Rodenbach said.
The proposed 2010 budget includes $75,000 in funds for lift station maintenance and repair.
Current monthly sewer rates average about $47.
Council member Ken Malich asked whether or not the city could spread the increases over a longer period of time. Rodenbach said that even extending the proposed rate increases over five years would increase overall payments.
For council member Jim Franich, the proposed rate increases represent a “culmination of poor decision-making in the past” on the city’s part.
“This is a tremendous change for our rate payers,” he said. “It hurts the people.”
To that, council member Derek Young asked Franich to name another option to fund projects and maintenance.
“There simply isn’t one,” Young said.
Rodenbach added that if sewer rate increases held at 3 percent annually, funding would not be available for the Harborview Drive water line project.
Storm
Storm drainage fees will see 3 percent increases for the next three years. Increases will provide revenues for new national pollution and elimination system requirements, plus other maintenance and construction projects.
Residents currently pay an average of $133.44 annually for storm drainage fees; by 2012, the fee will be $145.80.
All finalized rate increases will take effect Jan. 1, 2010.
Property tax levy approved
The city council unanimously approved 2010 property tax figures for the regular property tax levy and the Eddon Boat excess property tax levy.
The city plans to collect more than $1.9 million in property tax levy, annexations and new construction and improvements for 2010.
More than $160,000 of those increases will come through annexations, new construction and improvements.
The 1 percent increase cap on collections will result in the city collecting about $17,000 more than it collected last year, which works out to about 93 cents per $1,000 of assessed property value.
The $3.5 million bond to fund Eddon Boat also will continue to be levied in 2010. To take out a $250,000 chunk of the 2005 unlimited tax general obligation fund, about 12 cents per $1,000 of assessed value will be levied.
Property valuation for next year’s levy rates is figured at $2.05 billion.