Sewer rates going up

Spokane County sewer rates are going up.

That’s no surprise to those who’ve followed extensive negotiations over pollution in the Spokane River that shaped the county’s plans for a $106 million new sewage plant. But how to spread the cost of the new high-tech sewer capacity among homes, businesses and new development will be at the center of rate discussions this summer.

At a joint meeting between the Spokane Valley City Council and county commissioners Tuesday night, sewer experts revealed the county’s options in a rate study that should be finished in early July.

Its recommendations include a $5.79 increase in sewer monthly charges for next year. That’s a 21 percent increase, which would bring residential sewer rates to $33.47 per month.

Smaller increases over the next several years would result in a rate of $39.48 per month in 2013.

“We are on course to make a pretty major change in our rate structure” said Spokane County Utilities Director Bruce Rawls.

Fees charged for new sewer hookups are another large variable in the sewer funding equation.

One of the charges to hook up new houses to sewer would go up almost 45 percent next year, from $2,510 to $3,632.

The charge for 9,700 households in line to be hooked up to sewer as part of the Septic Tank Elimination Program would be at today’s rate plus inflation in the years to come.

The rates presented Tuesday are only recommendations, and a finance expert hired by the county outlined several options for the county to spread out the coming capital costs.

Commissioner Mark Richard said that increasing the cost for septic tank owners to hook up the sewer might be more equitable, because the sewer system will be much more expensive and technologically advanced than the system septic users have plugged into in the past 25 years.

There was discussion on how much of the infrastructure’s cost is the responsibility of developers building new houses and how much should be shouldered by the people who are already using it.

“It’s the same as the impact fee discussion we continuously have,” said Councilman Dick Denenny.

Another balance will have to be struck between residential customers and businesses.

Under the proposed rate plan businesses would bear more of the rate increase because the utility found out that households were putting out a smaller proportion of the sewage than previously thought.

Monthly commercial rates would increase the same amount as the residential rates, but the charges based on the volume of sewage the business produces would increase by 33 percent.

Councilman Rich Munson suggested putting a cap on the amount that businesses producing large amount of sewage should pay, and Denenny said he wondered what impact the increase would have on the economy.

The new rates will be the subject of a public hearing in mid-August before the commissioners, who will ultimately decide what the new rate plan looks like.

The money will go toward $387.2 million needed for the county’s growing sewer needs through 2016, including the new sewer plant, water reclamation projects and sewer line repairs. It also includes $47 million for upgrades to the existing sewer plant, owned by the city of Spokane, and $88 million for Septic Tank Elimination Program.

“These are not only competitive rates, but they are extremely competitive when you look at the kind of technology we are talking about,” Richard said.

During negotiations on how local sewer and industrial plants can comply with new regulations that slashed the amount of phosphorus that can be dumped into the river, many feared requirements for a state-of-the-art sewer facility would increase sewer rates even more.

“I came in here thinking these rates were going to be twice as much as we’re going to pay,” said Councilman Steve Taylor.