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Port Orchard consultants propose simpler sewer rate structure; residential bills to fall initially while some businesses face higher charges

3767228 · June 11, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Consultants presented a sewer utility rate study recommending a simplified ERU-based rate and a 3.5% annual revenue requirement; single-family bimonthly bills would drop initially under the proposal while some nonresidential accounts would pay more to better match cost to serve.

Taghi Acker, a consultant with FCS Group, and Zach Hazel of Bowman Group presented results of a comprehensive sewer utility rate study to the Port Orchard City Council on June 10, saying the utility needs roughly 3.5% more revenue per year through 2030 to pay operating, capital and debt-service costs. Under the consultants27 preferred approach the city would simplify the current 21-class rate schedule to a per-ERU (equivalent residential unit) charge, lowering the typical single-family bimonthly bill in 2026 from $163 to about $151.58 while raising the nonresidential per-ERU charge to roughly $235.

The study matters because the city plans about $50 million in sewer capital work over the next six years (unescalated), which the consultants escalated to about $60 million using a 3.5% construction-inflation assumption. Consultants modeled funding from grants, low-cost state loans, developer contributions and rates; their recommended hybrid approach spreads large project costs partly through borrowing and partly by rates to smooth customer impacts.

Consultants described the study in three parts: a revenue-requirement (how large the total revenue pie…

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