PORT ANGELES — Port Angeles’ water and wastewater rates for the next two years will increase, adding a total of about $99.96 annually for most residential customers, city finance director Sarina Carrizosa said.
The changes will go into effect Jan. 1.
The city calculates its rates to ensure revenue requirements are met while providing affordability and stability to customers, Carrizosa said.
Overall, Carrizosa said about 86 percent of the city’s customers will see an average cost increase of about $6.36 per month for water and about $1.97 per month for wastewater.
“It’s always difficult to see these cost increases, but it’s also really important to emphasize that staff has worked really hard to present rates that are as low as possible,” she added.
There are five water rate categories: residential, commercial, municipal, federal non-taxable and irrigation.
The residential base rate will increase 14.7 percent, from $40.86 per month to $46.88. Usage rates will increase by 2.7 percent.
Commercial base rates, calculated based on pipe size, will range from a 13.5 percent increase to a 16 percent increase. Usage rates will increase by 7.9 percent.
Municipal base rates will increase by 13.5 percent to 15.8 percent, with usage rates increasing by 7.8 percent.
These rates are slightly less than commercial rates due to the removal of certain taxes that municipalities are not required to pay, Carrizosa said.
Federal non-taxable rates, similar to municipalities, will increase by between 14 percent and 16.5 percent for base rates with an 8.3 percent increase for usage.
Irrigation base rates will increase anywhere from 15.2 percent to 15.9 percent, with a 7.8 percent increase for usage.
One factor impacting the rate increases is escalating water utility expenses, which are projected to increase by $631,000, or about 7.6 percent. The increase is largely due to greater internal charges, capital transfers and supply costs.
To meet expenses, Carrizosa said a 20.4 percent revenue increase is needed for the same period.
There are a few reasons the revenue needs outpace the projected expenses, Carrizosa said. First, Port Angeles left the water rates static for 2021-2022 to help with pandemic impacts. Second, it used rate stabilization for 2023-2024 rates.
Those decisions were offset by reserves at the time, but now the utilities need to play catchup, Carrizosa said.
“We’re building back that need into the rates,” she said. “It’s really to prevent larger increases in the future.”
Wastewater rates
There are four wastewater rate categories: residential, commercial, municipal and federal non-taxable.
Residential rates will increase between 0.9 percent and 2.4 percent, based on pipe size.
Residences with a 5/8-inch pipe will pay a base rate of $35.80 per month, while those with a 1.5-inch pipe will pay $108.10 per month. Other pipe size base rates will be somewhere in the middle.
Residential usage rates will increase by 5.5 percent.
The combined sewer overflow base rates will remain at $13.92 due to the city’s unchanging debt payment costs, Carrizosa said.
Commercial base rates will increase by between 0.2 percent and 1.2 percent, with a 5.5 percent increase for usage.
Municipal base rates will increase by between 0.5 percent and 2.5 percent, with a 5.6 percent increase for usage.
Federal non-taxable base rates will increase from between 1.2 percent and 3.4 percent, with a 9.7 percent increase for usage.
These increases are more gradual than the water rates because the city did not leave wastewater rates static or use rate stabilization, Carrizosa said.
The rate changes also are partially tied to projected wastewater expense increases of $1.1 million, about a 13.8 percent increase.
The largest factors contributing to the increase include personnel costs, internal charges and supplies.
Based on a variety of factors, Carrizosa said the city will need to increase wastewater revenue by 18.8 percent.
Affordability
When compared to 15 other cities that are similar in size and permitting requirements, Port Angeles’ water rates are the highest. Wastewater rates fall somewhere in the middle.
Overall, city residents are spending about 43 percent of their median household income on housing costs, Carrizosa said. This is the third highest when compared to the other cities.
To decrease the cost burden, low-income residents may apply for a 25 percent to 35 percent utility discount by submitting a Utility Discount Application, which can be found on the city website.
“While we do have increases projected to the rates, staff does remain dedicated to keep those rates as affordable as possible,” Carrizosa said.
The city council approved the increases 6-1, with council member Brendan Meyer voting against the changes.
Medic, stormwater, electric and solid waste utility rates will be evaluated next fall.
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Reporter Emma Maple can be reached by email at emma.maple@peninsuladailynews.com.
