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Community News 06/26/09
Comments on sewer rate increases taken until Tuesday
By Mike Huffman
Spoka
ne Valley News Editor


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Maybe they were in line for the new Transformers movie.

With no one present to comment – and still some question about the overall time period for financing – Spokane County commissioners opted Tuesday to hold off on making any decisions on any potential increases in sewer rates. The new deadline is next Tuesday at 5 p.m.

The commissioners plan on making a final decision on the rates, which could go up from the current $35.34 per month for a typical household to $40.34 in 2010, at their July 7 meeting at 2 p.m.

“We really do want to get input from the public on this,” said county Commissioner Mark Richard.

The commissioners heard from county utilities staff who laid out possibilities for increases in not only monthly sewer bills, but also for sewer connection and inspection fees. All are related, in some way, to the increases in capital and construction costs for a new regional wastewater treatment plant that is currently under construction near Trent and Freya that will mostly serve residents of the Spokane Valley area.

Rates would rise incrementally each year, at least initially, to cover construction costs and for upgrades to the existing system, said Bruce Rawls, county utilities director. For example, monthly rates would reach $45.04 per month in 2011 and $46.83 monthly in 2012.

Those fees are based upon several assumptions, Rawls explained, including a 20-year repayment plan based upon revenue bonds backed up by sewer users. No payments would be made on the principle for the first five years, he said, in order to keep the rates a bit lower.

Total costs are expected to reach $281 million for the plant, upgrades and interest. That amount could drop if treated wastewater mostly is discharged to the Spokane River and not partially sent to Saltese Flats for a wetlands project.

The county is waiting on word from the state Department of Ecology on new acceptable phosphorus levels that would be allowed in the river, and whether or not the plant will qualify for a discharge permit.

Monthly rates could drop another $2 or so a month, Rawls added, if the county opts for a 25-year financing plan. The downside is that it would tack another $47 million onto the overall cost due to interest and that it would be possible that the plant could become obsolete before it is paid off.

Richard said he was concerned that a more forceful commitment hasn’t come forward from the city of Spokane Valley that it will partner with the county for the life of the state-of-the-art facility, which is expected to have some of the most up-to-date technology available. At a February joint meeting, Spokane

Valley Mayor Richard Munson told commissioners that the city is continuing to look at other options in case a discharge permit could not be secured from DOE or if current sewage capacity was reached at the Spokane treatment facility before the new plan goes on line and an areawide building moratorium goes into effect.

“That’s what would trigger us coming up with another plan,” Munson said at the time. Since then the council has supported the 20-year repayment option, but also would like to see users pay as little as possible.

While Munson conceded that no other option “made any sense,” Richard said he is worried that potential bond buyers may be scared off by the city’s lack of commitment.

“It has the potential to drive up interest rates,” Richard said. “If (Spokane Valley) is concerned about keeping costs down, we need that written commitment.”

Rawls said he staff was continuing to work with city officials.

Want to comment?
Written comments on the proposed sewer rate increases can be left for county commissioners at www.spokanecounty.org/commissioners or mailed to their office at 1116 W. Broadway Ave., Spokane, WA 99260. Additional information on the new wastewater treatment plant and proposed sewer rates can be found at www.spokanecounty.org/utilities. Comments will be taken until Tuesday, June 30, at 5 p.m.


 
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