City to raise water rates

The Shelton City Council is slated to vote Tuesday evening to raise basic monthly water service rates from $46 to almost $75 by 2029 to meet operating expenses and pay back loans.

The council unanimously gave preliminary agreement to the proposed rates at its Sept. 5 regular meeting. They were recommended by the consulting firm of FCS Group.

The proposed basic rate for monthly water service, before any water is used, would rise 14% from $46.09 currently to $52.54 in 2024; increase 14% again in 2025 to $59.90; another 14% in 2026 to $68.28; 3% in 2027 to $70.34; 3% in 2028 to $72.45; and 3% in 2029 to $74.62.

The council members examined a chart that showed the amount of money needed to operate the water utility will rise from $3 million this year to $5 million in 2029.

The current rates don’t cover operating and expense services, Mayor Eric Onisko said.

“That black line (on the chart) says we don’t have enough money to have water service,” he said. “That doesn’t pay the employees, that doesn’t pay for the upgrades, any broken lines, we don’t have it … What do we do? Do we lay off more water people? Do we have a moratorium and build no new homes?”

Onisko said he almost “fell out of my chair” when he saw the proposed 14% rate increases, “but we want safe, clean water. We want to be able to put out a fire.”

Onisko said the water bills at his home during the summer are $300 to $400 because he waters his lawn and tops off the water in his swimming pool as it evaporates.

“So I’m feeling the pain as well, and so are my neighbors, and I hear about it a lot,” he said.

People who choose to build homes in the city will ease some of the financial burden, Onisko said. City staff does a great job at securing grants, he said.

Council member Deidre Peterson lives in a home that has been in her family for four generations.

“We almost didn’t buy it because we didn’t want to pay the city’s rates, but when it came down to it, looking at where we are today, this is the responsible choice for long-term growth, because if we don’t do it, we’re looking at more debt service, we’re looking at taking more money out of the general fund, and it will affect other services,” she said.

Peterson thanked the consulting firm and city staff for producing a workable solution.

“This is a best-case scenario for a worst-case scenario,” she said.

During public comments, Mike Olsen, who served on the three-member Shelton City Commission before it became the seven-member city council, said he is proud the council hired a consultant, and then followed its recommendation. He said he played a large role in a rate increase he believed cost him an election.

The city is making “a simple business decision” based on facts, while others are fueled only by “emotion” on such matters, Olsen said.

“It’s going to hurt everyone, no question about it, and like you just said, you want it to grow, you’ve got to have the means to grow, you need to have this done,” he said.

As of 2020, the city‘s water system has about 3,700 connections. The city’s water distribution system consists of almost 66 miles of water main, three wells, five reservoirs and four booster pump stations. The city is divided into five pressure zones: Angelside, Capitol Hill, High School, Mountain View and Upper Mountain View.

The city’s updated water comprehensive plan found the city’s water storage “deficient under all planning years.” It recommends the city study and improve the Angelside Reservoir pump station, construct a new reservoir in Upper Mountain View near the city’s well No. 1, build a new reservoir in Angelside, take the Capitol Hill Reservoir offline, and create a new reservoir in Upper Mountain View in Shelton Hills, with the developer paying that cost.

High rates?

Shelton residents have grumbled for years about what they perceive as costly water and sewer rates, but according to the city, the rates are lower than other Washington cities, even with a proposed 14% increase in basic water rates next year.

A chart presented at the Shelton City Council’s Aug. 8 study session states that residents of a single-family home in Shelton pay an average of $4,518 a year for water and sewer service. With proposed increases recommended by consultants FCS Group and given preliminary approval by the council Sept. 5, that amount would rise to $11,000 in 2024.

According to the consultant’s report, that total is lower than these “comparable” towns in the region:

■ Washougal, $11,563

■ Monroe, $11,567

■ Yelm, $13,119

■ Snohomish, $14,151

■ Bremerton $14,477

■ Centralia (N-P Zone) $14,486

■ Tumwater $14,486

■ Sedro-Woolley (Skagit PUD) $14,611

■ Olympia $15,527

■ Centralia (P Zone) $17,404

■ Lacey $20,085