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TOWN OF FRIDAY HARBOR |
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Email this page to a friend Related StoriesNews about the Town of Friday Harbor Stories about Town of Friday Harbor waste water treatment plant Editorial: Time to consider cost of tradition Editorial: Town Council could cut town costs $.25 million Editorial:Friday Harbor residents aren't flush: Don't raise the sewer rates |
8.5 percent increase in water ratesposted 09/20/04 Consultant: water, sewer rate increases necessaryposted 12/05/02
The rates reflect more than $15 million in upcoming capital projects. They include $2 million to upgrade the water transmission system, $6.8 million for wastewater treatment plant upgrades, and $4 million for Trout Lake Dam improvements.
Town Council approves rate increase effective Oct. 1posted 09/23/02
Town Administrator King Fitch told the council at the September 19, 2002 meeting, "We've had a fairly decent amount of interest in people who want hookups. We've gotten at least three checks from people who want to hook up early." People can beat the connection rate increase by paying before October 1, 2002. The council held a first reading of the ordinance setting the rates at their September 5, 2002 meeting. Fitch said, "Customers will definitely see the rate increase. Single families were treated as a protected class and will see less of an increase than businesses." He reminded the councilmembers this is an interim user fee. The council approved a $22,760 rate study which will be ready in about 30 days. "I imagine the rate study will suggest another one (rate),"King said. " I assume it will be higher." The council was presented several options which spread the increase in different ways. Option I which was chosen raises half of the amount needed by increasing the base charge and half by increasing the use charge. See chart for figures.
Town Councilmember Howie Rosenfeld before voting for the motion said, "I'd like to say given the circumstances we have no choice, I sure wish we would look at other funding options to spread it, property taxes and sales taxes. We're making things less affordable by doing this...These are hard decisions, when you have a pet project like the fire department and you refuse to consider it (having Fire District 3 provide fire service). The savings in first year is over $200,000 we could put in our pocket. We need to spread the hard decisions around. Sewer rates increase 17 percent
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| Ordinance 1195 | ||
| meter size | current charge for sewer hookup | proposed charge for sewer hookup |
| 5/8" | $2,670 | $4,955 |
| 1" | $6,335 | $12,048 |
| 1.5" | $12,445 | $23,868 |
| 2" | $19,776 | $38,054 |
| 3" | $39,327 | $75,884 |
| 4" | $61,320 | $118,442 |
posted 09/06/02
The 17 percent increase in monthly sewer rates and a 185 percent increase in sewer hook up fees beginning October 1, 2002 may be followed by more increases after a $22,760 rate study is completed.
"This is the first reading (of Ordinance 1195)," Town Administrator King Fitch told the council during their Sept. 5, 2002 meeting. "If you are satisfied. You can take action September 19 and the rates will be in effect October 1." The council by consensus agreed with the rates and then began discussing the necessity of a study to set and justify more increases.
The council approved a resolution authorizing the Mayor to execute a study by Financial Consulting Solutions Group, Inc. The study will determine rates that will cover the costs of improvements to the wastewater treatment system. It will also determine water rates which will cover improvements to the water treatment plant and transmission lines. The motion to order the study was approved 4 to 1. Councilmember Wally Gillette voted against the motion.
Under Ordinance 1195, a single-family residence will pay $68.42 per month, an increase of $10.09 per month. The basic monthly bill for water, sewer and stormwater will be $97.42 for a single-ramily residence. Councilmember Carrie Brooks noted the increase was less than the $14 to $18 discussed earlier.
Fitch said, "We shifted the burden to high users." Commercial businesses which have high-strength sewage will pay more. A large motel which paid $3,263 for the month of August 2001 would pay $4,270 for that amount of sewage. A large restaurant that paid $2,753 for August 2001 would pay $3,649.
Councilmember Howie Rosenfeld reminded the council to keep in mind the 468 single family sewer hook ups when approving spending. "The fire chief's raise equals a dollar a month per customer that could have relieved rates," he said.
Brooks said, "The fire chief’s salary has nothing to do with the sewer rate."
Rosenfeld noted the fire department is funded by the general fund. The council did not look at ways to free up general fund money to offset the sewer rates. "Sometimes the council refuses to go with some very practical answers," he said. "We can’t just keep sticking it to the users."
Councilmember David Jones said the sewer utility must be financed by the users. "We're not sticking it to the users," he said. "We're running a business. We can't be pricing it below cost...We are the directors of the corporation. We would be derelict in our duties."
Rosenfeld said. "The size has to accommodate the commercial center of the island. We're asking single families in Friday Harbor to foot the bill." He favored a mixed funding source.
Councilmember Bill LaPorte said because of tourism the property tax rate for the Town of Friday Harbor is the seventh lowest in the state. The town collected about $300,000 in property tax and $790,000 in sales tax last year.
posted 08/02/02
The full cost of the new wastewater treatment plant should be borne by ratepayers Friday Harbor Town Council decided August 1, 2002. The council favored covering the cost of the plant, which is sized to accommodate the influx of tourists, by increasing sewer hookup fees 192 percent and raising monthly rates 17 to 23 percent.
The council directed town staff to bring back exact figures. The costs discussed August 1 would raise the fee to hook up to sewer service from $2,600 to $7,600. Town Administrator King Fitch said hook up costs for some other Washington communities are:
In 1996 the Town Council decided not to increase the hook up fees to the price recommended by a consultant. The councilmembers were concerned about the impact on affordable housing. Fitch said the council could have added $4,000 to the fee at that time. Councilmembers directed Fitch to recalculate the numbers. Councilmembers David Jones asked if there was a formula. Fitch said the formula has two parts, the general facilities charge and the system development charge. The fees will be recalculated in light of the new $6.8 million wastewater treatment plant.
Regarding monthly rates, the council preferred Option I which increases monthly rates 17 to 23 percent. The base rate for single-family-homes would go up by $10 to $68 per month. A sampling of monthly rates for other businesses is listed on the table below.
| Monthly sewer rates calculated using August 2001 as a base: | ||||
| Existing Rates | OPTION 1 half of $242,000 raised by increasing base charge, half by increasing use charge |
OPTION 2 $242,000 raised by increasing base charge |
OPTION 3 $242,000 raised by increasing use charge |
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| Large Motel | $3,263 | $4,270 | $3,291 | $4,552 |
| Large Restaurant | $2,753 | $3,649 | $2,781 | $3,887 |
| Group Quarters | $3,015 | $3,996 | $3,043 | $4,254 |
| 12 Unit Apartment | $391 | $505 | $420 | $525 |
| Single Family Residence | $58 | $68 | $86 | $58 |
A complete list of current rates is available on the Town's Web site |
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Councilmembers Jones, Carrie Brooks and Howie Rosenfeld were interested in discussing sharing the burden by partially covering the cost through a property tax increase. They noted that undeveloped property increases in value because of the presence of the sewer plant. Councilmembers Wally Gillette and Bill LaPorte opposed a property tax increase.
Town Administrator King Fitch said, "Staff recommends you stay the path we have gone in the past which is to increase the rates." He said having the users pay for the utlilty is "defensible, explainable and fair." In the end Brooks dropped her support of property tax and the decision was made to place the entire burden on the utility ratepayers.
Rosenfeld suggested the town could stop paying the sheriff's office. He noted taxpayers already pay property tax to the county which goes towards the sheriff. Eastsound and Lopez Village don't pay extra for sheriff's services. "I suggest we look at this. Start weaning the sheriff's department off of it."
There was no discussion of the possibility of saving money by eliminating the fire department and having the county fire district provide the service. A letter from Friday Harbor resident Lee Sturdivant requesting discussion of that option was included in the board's packet but was not mentioned.
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