Cowlitz County staff present modest equipment-fee changes and propose 4% water‑and‑sewer increase

Cowlitz County Public Works on Thursday told county commissioners it will present updated hourly rates for the equipment revolving fund and is recommending a 4% increase to water and sewer base and consumption charges for 2026 while the county completes a formal rate study and capital plan.

The equipment rates shown to commissioners cover vehicle maintenance, reserves and fuel and are calculated using a five‑year rolling average for maintenance, a three‑year average of use hours and a 20‑year replacement projection. Public Works said the adjustments average about 2% across vehicle and equipment categories but vary by type.

County Finance Director Kathy Fung Baxter and Public Works staff said the ER&R matrix is used for internal billings between the ER&R fund and the roads fund, and the same hourly rates would be applied if another governmental agency rents county equipment. “Each category is an independent calculation,” Public Works explained, and changes from year to year can reflect atypical high‑usage years or large repairs that skew short‑term averages.

Public Works recommended a 4% increase to water and sewer rates for 2026, continuing a policy change from the prior year. Staff said last year’s adjustments included a 4% rise for residential users and a 10% increase for industrial customers; for 2026 the proposal is 4% across the board. County staff said the recommendation is an interim measure until the county completes an updated capital plan and a formal rate study that will account for large capital needs and ARPA‑funded projects.

Staff provided connection estimates and service areas for context: roughly 1,250 water connections and about 800 sewer connections were cited (staff described those as approximate), and affected service areas include Bridlewood, Woodbrook, the Toutle/Sperlich Highway area, Toutle River Drive and Camelot. Staff said current one‑time fees and system development charges for new connections, damages and other non‑routine charges would not change for 2026.

Commissioners asked whether a 4% increase will be sufficient for major infrastructure repairs; Public Works and the county engineer said they expect the rate study and updated capital plans to identify longer‑term needs and justify any larger future rate adjustments. County Engineer Susan Eugene said the county will pursue federal and state funding sources—CDBG, revolving loans, STP and others—to match local resources while a full rate and capital plan is developed.

Staff said the presentation at this meeting is informational; formal adoption of fee schedules and any ordinance or resolution will take place as part of the 2026 budget adoption process.

The county did not take a formal vote on rates at Thursday’s meeting; staff said commissioners will see the finalized fee schedules again when the budget and required resolution are brought forward for formal adoption.