ML city council OKS 1.8 percent rate increases

MOSES LAKE — The Moses Lake City Council unanimously approved increasing water, sewer, stormwater and ambulance utility rates by 1.8 percent.

The annual rate increases of 1.8 for each of the four utilities are based on the Consumer Price Index (CPI) change for the period ending Dec. 31, 2015. The increase for the water, sewer and stormwater rates will be starting on May 1. The increase for the ambulance utility will go into effect on May 5.

Rate indexing was first established in 1998 to “incrementally” increase fees instead of instituting large rate increases every couple of years, according to the city. Before 1998 rates “were known” to have large increases by as much as 15 percent in a single year. The date of annual rate increases are determined by city ordinance and scheduled to occur at different dates during the year.

Although the increases were ultimately unanimously passed by the council, some councilmembers voiced concern about them.

“Is it (the raises) something that is necessary? There has been a lot of negative feedback in the community on raising the rates,” Councilmember Don Myers remarked.

Municipal Services Director Gary Harer said if the city had not implemented the annual CPI adjustment in 1998, the city would have less “buying power," which would reflect in bids for projects.

In regard to the increases for water, sewer and stormwater rates, the passage of the increases allow city revenue to keep pace with inflation and increases in expenditures from the previous year. It also allows the city to keep in place a fund balance for the purpose of maintaining and insuring the “integrity” of the utility system and allows for the preparation of emergency repairs, according to city documents.

“We are one disaster away from depleting that fund,” Councilmember Mike Norman noted.

Councilmember Ryann Leonard questioned if the increases would cover the deficit the city is currently seeing based on recycling costs.

“If we are going to have to raise the rates to cover the recycling, I would rather just raise the rates all at one time versus we are raising it this month and then we are raising it next month again,” Leonard said. “Because the community is not going to understand that we just keep raising it. We have good reasons, but they don’t understand. They just see their bills going up. So if we are going to raise for CPI adjustment, I want to factor in, or have a conversation regarding recycling.”

City Manager John Williams explained some of the ins and out of recycling, noting that the recycling industry typically has an inverse relationship with fuel prices, which in turn can have an affect on how much the city receives back. In regard to the rate adjustments occurring throughout the year, Williams suggested putting together a fee table and looking at making adjustments annually as a part of the city budget.

“The suggestion might be better that we bring that all together as a part of our adjustment to the budget annually,” Williams said. “Right now this is what the (city) code calls for, so that’s when it does occur.”

City documents note that similarly to the increases of water, sewer and stormwater rates, the increase of the ambulance utility fee, “will help sustain the fund balance and help maintain the integrity of the utility for emergency repairs or expenditures.”

Richard Byrd can be reached via email at city@columbiabasinherald.com.