To keep up with the cost of inflation, to maintain appropriate reserve fund levels, as well as to properly plan for significant infrastructure projects such as upgrading the sewer pipes to accommodate the development of the Boise Cascade Mill Site and the Rudkin Rd. Lift-Station Controls Upgrade project, Wastewater rates must periodically be adjusted to cover the cost of service.
The City contracted with FCS Group to conduct a rate study of the Wastewater Division. This effort corresponded with the Wastewater Division’s 2014 Facility Plan. This approach, provided an unbiased comprehensive analysis of the Wastewater Division’s financial needs.
FCS Group recommended the following rate increases for the Wastewater Division:
Retail Wastewater: A rate increase of 3% per year for four years (2019-
2022).
Sewer Pretreatment
Charge: A rate increase of 17% in 2019 and 4.3% per year for
three years (2020-2022).
Business customers on the Pretreatment Program are
billed every two-months based on current Pretreatment
Sewer rates to cover the cost for the City to monitor,
collect and test wastewater samples over the course of a
year.
Strong Waste Surcharge: A rate increase of 4.2% in 2019 and 2.4% per year for
three years (2020-2022).
Business and industrial customers that discharge
wastewater exceeding domestic levels are billed
every two-months based on current Strong Waste
Surcharge rate. The surcharge is based on metered
water consumption or wastewater metered discharge
and the tested concentration level of the wastewater
that exceeds domestic levels.
The last rate adjustment for the Wastewater Division was conducted in 2018. The revenue received is collected into the Wastewater Operating Fund 473, Wastewater Capital Facilities Fund 472, Wastewater Capital Construction Fund 476 and Wastewater Capital Projects Fund 478.
Attached for review is the revised Yakima Municipal Code Chapter 7.60 based on the recommendations from FCS Group and as directed by the City Council at the October 18, 2018 Budget Session. This rate increase provides the Wastewater Division with proper funding levels for the next four years.
Future fee increases will be presented to Council in an annual fee schedule rather than individually throughout the year on a case-by-case basis.