Council approves sewer rate that is investment in wastewater infrastructure

June 14, 2010

Summary

Two-year rate ensures stability, ability to maintain overall wastewater system

Story

With an eye towards future rate stability for customers, the Metropolitan King County Council today unanimously adopted a two-year sewer rate of $36.10 per month. The two-year rate ensures that there will be wastewater conveyance and treatment capacity to meet the growing needs of the suburban communities.

“The Council’s two-year sewer rate proposal creates stability and predictability for rate-payers, while meeting our financial obligation to contractors building the Brightwater treatment facility,” said Councilmember Julia Patterson, Chair of the Budget and Fiscal Management Committee.

“I think this 2-year rate proposal strikes a good balance between keeping rates low for our customers while paying down our debt and keeping our bond rating in good standing,” said Councilmember Jan Drago, Chair of the Regional Water Quality Committee, which is responsible for developing and overseeing policies for regional water quality and sewer service issues.

The adopted sewer rate is an increase from the 2010 rate of $31.90. The funds will go toward the payment of long-term bonds used to finance the construction of Brightwater, the region’s third major wastewater treatment facility. The increase will also offset increases in the cost of maintaining and operating the regional wastewater system that serves customers in King County, south Snohomish County and a small portion of Pierce County.

“During these times of economic uncertainty, the Council’s changes to the Executive’s proposal provides rate stability and certainty for ratepayers for two years,” said Councilmember Larry Phillips. “Through this new rate structure, we’ve worked hard to trim costs to protect ratepayers while preserving water quality and protecting the environment.”

The amount ratepayers see on their actual bills will depend on their local sewer utility. The sewer rate is charged to the 34 cities and sewer districts to which King County provides wastewater conveyance and treatment. Those jurisdictions independently set the rates that appear on bills sent to customers, adding in their own costs.

Consistent with the Council’s long-standing policy that “growth pays for growth,” members also approved a sewer capacity charge for new sewer hook-ups in 2011 of $50.45 per month for the average household, an amount that represents a $1.38 increase from the 2010 monthly charge of $49.07.

The capacity charge for new hook-ups is paid by owners of newly-constructed homes and businesses that generate the growth, and therefore the demand for service, which requires the construction of new treatment and conveyance facilities such as Brightwater. The capacity charge is assessed for 15 years after connection, as established by state law, but property owners can save 5.5 percent if they choose to pay a lump sum up front.

Today’s vote ensures that King County meets its contractual obligation to its 34 customer utilities to have the sewer rate for the coming year in place by June 30.


The adopted legislation advances the Council’s priority of Financial Stewardship.