Preston council enacts initial sewer-rate increase, advances sewer-code changes and infrastructure work

The Preston City Council held a public hearing on proposed increases to the city’s sewer rates and, after public comment and council discussion, approved Resolution 174 to enact the first round of increases, voting that the new schedule will go into effect May 1.

The council heard a presentation from Treasurer Kelly Mickelson, who said the city’s new wastewater treatment plant is nearing completion and that the project’s financing includes a mix of grants and loans. Mickelson told the council the total project cost is “around 69,000,000” and that the city’s borrowings total about $32,000,268; most of that borrowing carries a 1.75% rate, with a portion at 2.75%, and the loans were described in the meeting as fixed for 40 years. Mickelson also told the council the rates approved at the meeting “will not be the final rate” and that additional increases could be needed later when the budget is set.

A resident, identified in a pair of letters read into the record as from Mr. Koren, urged the council to shorten the loan amortization and cited higher long‑term interest costs under a longer payback; his letters asked the council to consider shorter payback terms or more detailed line‑item accounting of operating and maintenance costs. The council discussed those options; some members said a shorter term would increase immediate monthly bills and could “overburden our citizens,” while others said the council should revisit targeted assistance for low‑income households and consider a rate study for large commercial users.

Council members who spoke during deliberations framed the approved action as an initial, incremental step. Councilman Todd Thomas said the motion to adopt the published schedule was a measured approach: “we're only eating half the sandwich at once instead of trying to choke the whole thing down at the last minute.” Councilman Chris Larson and others said they favored the recommended starting increase and noted the city will revisit rates again during the budget process.

The council voted to close the public hearing before taking action. After deliberation the council approved Resolution 174, described in the agenda as "a resolution of the City of Preston compiling license and fee schedule and water and sewer rate schedule." The mayor announced the motion "carries unanimously" and that the rate schedule will be effective with the next billing period, May 1.

Related actions at the same meeting addressed sewer policy, infrastructure and engineering procurement. The council directed staff to prepare a formal ordinance amending Preston Municipal Code section 13.06013 (connection to sanitary sewer required) to change the existing language that "shall connect" to a provision that would allow existing property owners a one‑year window to connect without paying the city connection fee; property owners who wait beyond that window would be subject to the later connection fee. Council members emphasized the change applies to existing structures made newly able to connect when sewer becomes available and does not relieve obligations written into prior development agreements.

On transportation and public works matters, the council selected Keller Associates as the top‑ranked firm in an advertised qualifications process to provide transportation engineering services for several upcoming street projects. The council also approved a staff recommendation to extend a city sewer main on Fourth West to correct legacy private connections. Public works staff presented an estimate of roughly $25,000–$30,000 to extend about 275 feet of sewer main so homes currently tied into a private, nonstandard connection could tie into city mains; the council authorized use of available engineering and grant funds and agreed the work should proceed.

During a separate agenda item, the council reviewed requested amendments to the Hillside Subdivision development agreement. The council approved three of the developer’s requested changes — removing planned fire hydrants in the hollow (with provisions to preserve a future tie‑in), requiring HDPE (single‑strand) pipe for the segment crossing the hollow, and allowing a gazebo in a common open‑space area in lieu of a formally planned walking path. The council rejected a request to shorten the developer’s obligation to install an 8‑inch water main for the length specified in the existing development agreement and left the 8‑inch requirement in place.

Votes at a glance - Approval of business‑license list (motion earlier in the meeting): motion carried; one abstention recorded (Council Member Terry Larson) and otherwise approved as published in the packet. - Resolution 174 (water and sewer rate schedule): motion to approve adopted; mayor announced the motion "carries unanimously"; new schedule effective May 1. - Draft ordinance to amend PMC 13.06013 (connection to sanitary sewer required): council directed staff to prepare formal ordinance language and return it for final action at a future meeting. - Selection of transportation engineering firm: council selected Keller Associates as highest‑ranked firm and authorized staff to proceed with negotiations. - Fourth West sewer main extension: council authorized use of available engineering budget/ARPA or similar funds to extend the sewer main (estimate presented at $25,000–$30,000) to correct private service ties; motion approved. - Hillside Subdivision amendments: council approved developer requests for (a) removal of the hollow fire‑hydrant requirement, (b) single‑strand HDPE pipe across the hollow, and (c) gazebo in the open space; the council upheld the existing 8‑inch water‑main requirement in the development agreement.

Why it matters The actions respond to the city’s long‑running wastewater upgrade and the funding decisions that follow a large capital project. Council members repeatedly noted that the work and loans were driven by state or federal compliance requirements and grant‑funding structure. The meetings’ votes open a staged path to higher sewer bills in the short term while staff and council say they will examine assistance or targeted adjustments for low‑income households and perform follow‑up studies for high commercial users.

What’s next Council members and staff said further rate adjustments likely will be considered during the fiscal‑year budget process; staff was directed to prepare the sewer‑connection ordinance for formal introduction and return a final draft at a future meeting. Engineering work and the Fourth West sewer extension will proceed under staff direction, and the Hillside development agreement will be formally amended consistent with the council’s approvals.

Quotes (selected and attributed to meeting speakers) - Treasurer Kelly Mickelson (applicant): "Our new wastewater treatment plant is getting close to being done." (applicant presentation during the public hearing) - Mr. Koren (letter read into the record): "...a sewer rate for the repayment of [the] sewer note...must be established..." (written comment urging shorter payback and itemized fees) - Councilman Todd Thomas: "we're only eating half the sandwich at once instead of trying to choke the whole thing down at the last minute." (on staged rate increases) - Mayor (announcing vote): "Motion carries unanimously and this will go into effect May 1."