The Chehalis City Council tabled the first readings of three ordinances pertaining to proposed water, wastewater and stormwater utility rate increases through 2029 during the council’s regular meeting on Monday, Jan. 27.
The proposals were delayed due to clerical error as a capital facilities charge for the utilities was accidentally left out of two of the three ordinances.
While the ordinances were technically amendments to existing city code that already contained capital facilities charges, Chehalis Mayor Tony Ketchum said he wanted to ensure the council was being clear and consistent, especially considering the topic at hand was raising rates for customers.
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.
The ordinances will once again undergo a public hearing and first reading during the next regular Chehalis City Council meeting, scheduled for Monday, Feb. 10, at 5 p.m. inside Chehalis City Hall, located at 350 N. Market Blvd.
Despite tabling the ordinances, city staff still discussed the proposed utility rate increases, which were recommended 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.
“The study concluded that rate increases are necessary to address the city’s ongoing infrastructure needs,” Chehalis Public Works Director Lance Bunker said.
He added Chehalis’ current water, wastewater and stormwater utility rates are not keeping pace with the rising costs of providing the utilities and construction for the city’s capital improvement projects as inflation continues to drive prices higher across the board.
Bunker said the increase is needed to ensure the city can keep maintaining its utilities and provide its customers with reliable service.
Should the proposed utility rate increase ordinances be approved, they could go into effect as soon as this April.
For water service, a customer using 14 centum cubic feet (CCF) — with one CCF equal to 748 gallons — will see their bimonthly bill rise from $73.08 to $88.44 in 2025, then to $107.06 in 2026, $129.56 in 2027, $138.62 in 2028 and $148.28 in 2029, according to the council’s agenda report.
For wastewater service, a customer using 14 CCF will see their bimonthly bill rise from $197 to $202.86 in 2025, to $208.96 in 2026, $215.16 in 2027, $221.60 in 2028 and $228.30 in 2029.
For stormwater service, a customer using 14 CCF will see their bimonthly bill rise from $18.90 to $21.92 in 2025, then to $25.42 in 2026, $29.48 in 2027, $33.90 in 2028 and $38.30 in 2029.
The recommended capital facilities charge increases 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.
Ketchum asked city staff about the last time the rates were raised, which was done to help fund various capital improvement projects within the city. Specifically, he wanted to know how the council can ensure the projects being funded are being completed.
Chehalis City Manager Stacy Denham added that he plans on revisiting utility rates annually and provide the council with updates on projects.
“That gives the opportunity for the council to weigh in, or at least know how the money’s being spent,” Denham said.
For more information on the proposed water, wastewater and stormwater utility rate increases in Chehalis, go to page 13 of the Chehalis City Council’s agenda report available on the city’s website at https://www.ci.chehalis.wa.us/media/38946.
