Sunnyside staff propose fee-schedule clean-up; utility-rate and ambulance-billing studies to inform changes

Sunnyside City staff told the council on Oct. 6 that they have reworked the municipal fee schedule to correct multi-year inconsistencies and prepare for 2026 rate updates, while separate consultant studies will recommend final utility and ambulance rates.

Staff member Hector (presenting the schedule) said prior years’ intended annual increases had not consistently been applied, producing internal mismatches. “When I went back, like I stated, 3 to 4 years... I come to find out that it wasn't up 5%,” Hector said; he then said he applied a true 5% update across the fee table to align numbers to “the dime, to the penny.” Councilors and staff noted some fees showed large jumps where previous rounding had masked the correct increase.

Garbage, sewer and stormwater: staff said garbage rates are set by Yakima Waste and require an interlocal agreement; the city collects an administrative portion but does not set base disposal rates. Hector and staff said more work is needed on sewer and stormwater rates and that those items are blanked out on the draft until a formal rate study is completed.

Utility-rate study: the city has been working with FCS Group on a utility-rate and impact-fee study. Fire/EMS and finance staff said FCS Group will present its findings to the finance committee and later to council, likely offering three scenarios for council to consider. The consultant work will inform decisions about water, sewer and stormwater rates for 2026.

Ambulance billing: Fire leadership and billing staff described an ambulance-transport billing proposal. Chief and billing staff said 83% of transports are Medicare/Medicaid, which constrains collections, and that past collection rates on billed amounts from Medicare averaged about 9–12% of billed amounts over four years. To simplify billing and improve net recovery, staff proposed billing insurance for all transports for city residents and not sending a separate utility bill to Sunnyside residents for ambulance charges. “Sunnyside City residents will not receive a bill for their ambulance service above and beyond what their insurance is going to cover,” the chief said, adding that taxes and utility contributions would cover any remaining deductible or subsidy.

Staff said EMS standby and event-standby rates will be revisited after labor and contract costs are finalized; those standby events typically break even at best. Staff also said transport rates currently are low compared with private providers and that raising rates closer to insurer-allowable amounts could improve collections without creating per-call burdens for insured residents.

Process and next steps: staff outlined a plan to (1) finish the rate study and present options to the finance committee, (2) bring recommended rate changes to council for adoption, and (3) publish an updated, centrally managed fee schedule. Staff emphasized the city will return to council with specific proposed rate adjustments once the consultant concludes its work.

What residents should expect: no final rate changes were adopted at the study session. The city expects more complete proposals for water, sewer, stormwater and ambulance billing in the coming months after consultant and internal analyses are complete.