City Council approves utility rate increases

The Spokane City Council on Monday approved budgets for water, sewer and garbage service that will increase monthly bills by about 9 percent.

The rate increases come in the midst of a larger debate over $12 million in cuts in tax-funded services such as police, fire, libraries and parks in 2005.

City utilities operate under separate budgets funded by ratepayers. The utilities also pay a tax of 17 percent to the general fund, which is used to pay for city services.

Former Mayor John Talbott asked whether the council was considering an increase in the city utility tax to avoid cuts in police and fire services. “We’ve got a problem here,” Talbott said.

Councilwoman Cherie Rodgers said she has not ruled out any options in the current budget discussions.

Under the rates approved Monday, the average monthly city utility bill would increase from $49.88 to $54.32, which is calculated on service for a 32-gallon garbage cart and minimal water use.

The increase includes an additional $3 monthly charge to pay for improvements in the sewer system and a new $3.50 charge to pay for future upgrades of the city water system. Both those charges would accumulate in rate stabilization funds, which are intended to spread out the cost of capital improvements. The sewer system is already collecting a $4 monthly stabilization charge.

City officials restructured water-use charges to give a break to residents who use no more than 4,500 gallons a month. Water-use charges will increase as more water is used.

Environmental activist Rachel Osborne complimented the city on structuring its rates to encourage conservation.

Councilman Bob Apple cast the only vote against the 2005 utility rates because he said the improvements being funded through rate stabilization accounts are more than what is needed.

In other business, the council heard a parade of speakers praise Mayor Jim West’s budget proposal to encourage economic development.

West has proposed creating an economic development department at a cost of about $410,000. The city also provides subsidies of about $194,000 to economic development organizations, and another $150,000 to the Downtown Spokane Partnership for its security patrols and sidewalk cleaning efforts.

Marty Dickinson of the Spokane Regional Chamber of Commerce and the Spokane Economic Development Council called the mayor’s budget “absolutely critical” to the goal of improving the city economy.

Matt McCoy, a Spokane businessman, said, “As you all know, you’ve got to spend money to make money.”

Councilwoman Mary Verner said the mayor has never outlined a strategy to justify his proposal.

Deputy Mayor Jack Lynch sought to blunt the criticism by pointing out how an economic development department would be in charge of coordinating economic development from City Hall.

In an interview last week, West said he has not hired a new economic development director yet because he is waiting for council approval of his budget proposal. However, he has interviewed for the position and selected a candidate he hopes to hire, he said.

Council members took testimony on other aspects of the budget.

“I am definitely against reductions in the fire department and police department,” said Earl Winther, a city resident.

Raymond Reyes said closing the city’s office of human rights would be a retreat by the city from its leadership on that issue.