The Chehalis City Council on Monday, Feb. 10, approved water, wastewater and stormwater utility rate increases on first reading by a vote of 6-1.
The decision means there will be an increase in rates each year through 2029.
Additionally, city staff are moving forward with plans to make utility billing monthly instead of bimonthly.
A public hearing on the proposed rate increases was held during the meeting. Assuming the council approves the increases on second reading at its next meeting, the increases will go into effect on April 1.
After the public hearing, the council spent some time discussing the proposed increases, noting that 2012 was the last time the council approved utility rate increases within Chehalis, making the new rate increases steep.
“So we’ve done pretty good by not doing anything to anybody for quite a while, but we’re paying the price now,” Chehalis Mayor Tony Ketchum said.
The utility rate increases were proposed following a study of the city’s current rates and capital fatalities charges recently conducted by the FCS Group, Redmond-based public sector utility and finance consultants.
For water service, a customer using 7 centum cubic feet (CCF) — with one CCF equal to 748 gallons — will see their monthly bill rise from $36.54 to $44.22 in 2025, then to $53.53 in 2026, $64.78 in 2027, $69.31 in 2028 and $74.14 in 2029, according to the council’s agenda report.
For wastewater service, a customer using 7 CCF will see their monthly bill rise from $98.50 to $101.43 in 2025, to $104.48 in 2026, $107.58 in 2027, $110.80 in 2028 and $114.15 in 2029.
For stormwater service, a customer using 7 CCF will see their bimonthly bill rise from $9.45 to $10.96 in 2025, then to $12.71 in 2026, $14.74 in 2027, $16.95 in 2028 and $19.15 in 2029.
The recommended capital facilities charge increase included water going from $2,071 per equivalent residential unit (ERU) to $4,093, wastewater going from $3,030 per ERU to $5,103 and stormwater going from $489 per ERU to $1,342.
A capital facilities charge is a one-time fee paid by developers to cover the cost of hooking up new construction projects to city utilities.
With inflation continuing to drive up the price of providing utilities and utility service construction and maintenance, increases are needed in order to ensure the city can keep maintaining its utilities and providing customers with reliable service as Chehalis continues to grow, according to Chehalis Public Works Director Lance Bunker.
“Calculations are based on a fixed rate, plus a usage charge,” Bunker said.
Along with continuing to fund utility service and maintenance, part of the funds collected from the rate increases will go toward purchasing new water rights for the city, Chehalis City Manager Stacy Denham explained.
“But there’s a lot of things that apply to that, that we cannot use (the new water rights) to add to the current water system that the City of Chehalis has right off the top, until more infrastructure is actually put in,” Denham said.
Denham also plans to pursue Washington state grant funding to help pay for the new infrastructure, but grant approval is not guaranteed.
While most of the council voted to approve the rate increases, they were hesitant to do so with how steep the rate increases are.
Councilor Kevin Carns was the lone vote in opposition to the rate increases.
“I think a more regular review of these rates would probably ease the pain of pushing double-digit increases,” Carns said. “Versus waiting every 12 to 15 years to do a review.”
Denham added city staff will revisit rates beginning in 2028 and propose any possible future increases annually, like many other municipalities do.
In neighboring Centralia, utility rate increases are brought forward annually for approval by the Centralia City Council based on recommendations made by Centralia City Light using the U.S. Bureau of Labor Statistics Consumer Price Index.
The three ordinances with the proposed water, wastewater and stormwater utility rate increases through 2029 in Chehalis will undergo a second public hearing and second readings during the next regular Chehalis City Council.
That meeting is scheduled at 5 p.m. on Monday, Feb. 24, at Chehalis City Hall, located at 350 N. Market Blvd.
For more information on the ordinances, go to page 27 of the Chehalis City Council’s Feb. 10 meeting agenda report on the city’s website at https://tinyurl.com/yfh9fy6x.
