Chehalis staff recommend multi-year utility rate and connection-fee increases; public hearing continued to Feb. 10

City staff and the consultant who prepared the rate study told the Chehalis City Council on Jan. 27 that the city needs multi-year rate increases and updated capital facility charges to pay planned capital projects, rising operating costs and projected debt service.

The recommendation from consultant Chris Gonzales of FCS Group would move the utility customer billing cycle from bimonthly to monthly, add an option for electronic billing, and implement a 2025–2029 rate plan that staff and the consultant said is intended to phase in needed revenue rather than impose a single large jump.

The rate study’s revenue-need forecast reflects large water capital needs the consultant said total roughly $36 million through 2029, including distribution work, source investments and water-right purchases. Gonzales said grants and cash are expected to cover about 26% of that cost, with the remainder funded largely by debt; the additional debt would increase annual water utility debt service by roughly $1.9 million by 2029.

Gonzales summarized the recommended monthly bill changes (monthly figures presented by staff): wastewater would increase by about $2.93 in 2025 followed by modest annual increases through 2029; stormwater would rise about $1.51 in 2025 with smaller increases thereafter; water would rise about $7.68 in 2025 with larger jumps…