Utility Rates: Big Hurdles for Small Cities

In smaller cities, utility rates frequently exceed residents’ ability to pay. These communities lack the economies of scale necessary to spread the costs of multi-million dollar sewer and drinking water treatment plants across many residents.

• After the building of a Water Treatment Facility in 2001, a Wastewater Treatment Facility in 2005 and other necessary infrastructure improvements made in the last 10 years Kalama (population 2,475) is over $10 million in debt. The city has increased both water and sewer user fees over several years and is proposing another three-year sewer rate hike. With one of the highest sewer rates in the area already ($76 a month), the city reports the utility rates are extremely hard on their small pool of citizens.

• Cashmere (population 2,990) faces a $20 million sewer improvement project. Even with grants from the state, customers will likely see their bill increase from $45 to $100.

• Airway Heights (population 5,240) originally projected the cost of a new wastewater treatment facility at $38.6 million, but escalating construction costs increased the estimate to $43.3 million. This price tag is still far less than the hundreds of millions it would have cost the city to upgrade the regional treatment facility. By 2010, rates will increase to $80.

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