City outlines 2.7% CPI adjustment to utility rates for 2025; residential bill increases detailed

City finance staff told the Centralia City Council Wednesday that, under ordinances already adopted by the council, the city’s annual utility rate adjustments will follow the November Consumer Price Index (CPI) and will increase utility base rates 2.7% for bills generated in January 2025.

Brett Barterson, the city finance presenter, said the CPI‑based mechanism was reinstated by ordinance in late 2022 and the November 2024 CPI of 2.7% is the figure used to set 2025 base rates. “So based on the ordinances were passed in 2022 the water rates, wastewater rates, and stormwater rates will increase 2.7% over the rates charged in 2024 for the bills that are generated for January 2025,” Barterson said.

City staff later provided specific average changes for in‑city residential customers: the standard 3/4‑inch water base rate will increase by $0.61 (to $23.25); the stormwater charge rises $0.31 (to $11.66); and the wastewater base increases $1.99 (to $75.64). The city manager noted the adjustments apply to base rates rather than usage tiers.

Councilors asked for clarification on what CPI means for the public, and staff explained it is the federal Consumer Price Index for urban wage earners used by many jurisdictions to adjust rates. Staff also offered to send detailed average bill calculations to council members.

No council vote was required at the meeting because the CPI adjustment is implemented under previously adopted ordinances; staff will apply the 2.7% change to bills produced in January.