Lacey City Council OKs water, sewer and stormwater rate increase
If you’re a Lacey utility customer, your bill is set to increase July 1.
That’s because the Lacey City Council recently approved a mid-year increase to water, sewer and stormwater rates after they had delayed that action last year to help ratepayers during the pandemic.
The rate increase also was slightly different than the one previously discussed during a council work session. Then, the council had proposed a 3 percent increase to water and sewer rates, but on Thursday the council approved a 5 percent increase to both.
The reason? A higher increase now will ease the burden of the next increase, according to data shared by Lacey Finance Director Troy Woo.
A 3 percent increase to water rates would have resulted in a 5.75 percent increase next year, and a 3 percent increase in sewer rates would have meant 10 percent more next year, the data showed.
But the 5 percent increase to water means it only rises 5.25 percent next year, while the 5 percent sewer increase results in only a 9.5 percent hike the following year.
So, the water and sewer rate increase, plus a stormwater hike of 4.5 percent, which is on top of a 3 percent increase approved by the LOTT Clean Water Alliance (the agency that manages wastewater) boils down to this: the typical utility bill will rise about $3 to $107.25 per month.
That figure was based on 700 cubic feet of water per month. Previously, the finance director had used 900 cubic feet per month, but the lower number is closer to the average wintertime residential use, Woo said.
It wasn’t an easy decision for the council.
Mayor Andy Ryder said he had a hard time with the increase and wondered whether there might be federal funding available to offset it.
Both Woo and Public Works Director Scott Egger poured cold water on the notion of federal funding.
Even if the city received some funding, it likely wouldn’t move the needle that much, Woo said.
And Egger added: “It’s been years since there was good federal funding for water and wastewater utilities.”
Councilwoman Carolyn Cox said she “gulped” when she saw the 5 percent increase.
The difference between 3 percent and 5 percent isn’t that great, but there’s a big difference down the line, she said.
“Ultimately, this is the best deal for Lacey residents,” Cox said.
Councilman Malcolm Miller said it was a painful move, but it has to be done, or it’s going to hurt more later than now.
“I will be reluctantly saying ‘yes’ as well,” he said.
This story was originally published June 20, 2021 at 5:45 AM.
