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Goldendale council adopts 6-point increase to water and sewer utility tax (Ordinance 15-47)
Summary
The City Council approved Ordinance 15-47 on first reading and waived a second reading, increasing the utility tax on water and sewer by 6 percentage points (to a total of 12%), with council and staff clarifying that the increase primarily shifts funds from enterprise utility funds to the general fund to shore up city services.
The Goldendale City Council adopted Ordinance 15-47 on May 5, increasing the utility tax on water and sewer by 6 percentage points (from 6% to 12%) and waiving a second reading.
Councilmembers and city finance staff discussed what the ordinance changes mean in practice. Staff and the city CPA explained that the change is intended to increase general fund revenue; in practice, the tax is levied on the city’s public service enterprise that furnishes water and sewer and is typically passed through to ratepayers. Council and staff repeatedly clarified that the proposed increase targets water and sewer utility taxes and does not raise tax rates for other utilities such as garbage; wording in the ordinance references the earlier Ordinance 12-42 (1999), which originally established a business-and-occupation (B&O) and utility tax framework.
During discussion councilmembers asked about household impacts; staff and committee members said the increase would amount to roughly $18 per year for the average household (roughly $4–$5 per month). Council members also discussed the distinction between taxing the utility enterprise and passing charges to customers and asked staff to explain how accounts outside city limits are handled. Staff said customers inside city limits would be subject to the utility tax; properties outside the city limits are treated differently and historically have higher meter charges but not the city utility tax.
After brief discussion, a councilmember moved to adopt Ordinance 15-47 and waive the second reading; another councilmember seconded the motion. The council approved the ordinance (roll call recorded as passed in the meeting; vote counts were not recorded by name in the transcript). City staff said the additional revenue will support the general fund and help cover inflationary cost pressures and service-level funding shortfalls the city identified in budget discussions.
Councilmembers asked for additional clarifications that will be reflected in materials to accompany implementation notices to residents, including clear language about which utilities are affected (water, sewer) and which are not (garbage). The council packet included a rate-study recommendation from FCS that had previously suggested a utility tax increase as part of a broader rate and revenue strategy.
