Council hears 2026 revenue and rate proposals; directs staff to return an ordinance with 0% property‑tax increase

Medical Lake — City finance staff presented the city’s proposed 2026 revenue estimates and several utility‑rate adjustments at the Oct. 21 council meeting and explained options for the property‑tax levy before a public hearing required by state law.

Finance staff told the council the water fund proposal targets a $50,000 annual contribution to restricted water capital funds and would be funded by an across‑the‑board base‑rate increase equivalent to $2.79 per month per account (staff later clarified that change applies to all water users, not just residential users). Officials compared Medical Lake rates with neighboring jurisdictions and said the proposed base increases would keep the city nearer peer cities while reserving funds for capital needs.

On wastewater, staff said the enterprise showed an operational shortfall of about $84,000 under current rates. The presenter said wastewater charges had not kept pace with costs and that historical sewer base rates dated back many years with little change. The option presented would address the operational deficit and support ongoing work on the wastewater treatment plant.

Solid‑waste providers (Sunshine) set their charges using CPI formulas, the presenter said, and the city must keep pace with those increases to avoid subsidizing the solid‑waste fund. For the municipal utility tax, staff recommended lowering the rate by 1 percentage point (from 15% to 14%) to better align the utility tax with administrative cost allocations while retaining general‑fund support the tax provides.

Why it matters: staff emphasized the need to align rates with service costs to avoid drawing on general‑fund reserves and to fund capital projects such as wastewater improvements.

Public comment: Cathy Carpenter, a Silver Lake resident, told council she had submitted a county form to request a disaster‑related…