North Bend officials warn wastewater fund faces insolvency within years; options include rate increase, sale or legislation

City Administrator David told the North Bend City Council on Feb. 10 that the city's wastewater enterprise fund is under severe financial pressure and could become insolvent within about four years unless the city secures new revenue, sells assets or obtains external help.

The warning came as Public Works Director Ralph Rowles and staff reviewed this fiscal year's operating and capital picture for the wastewater treatment plant, including a roughly $1.3 million federal EPA appropriation the city has received and recent capital outlays that exceeded budgeted totals.

"The deficit is going to come from reserves this year," Rowles said, adding that operating costs are about $1.9 million while typical annual revenue is roughly $2.23 million. He told the council the plant can be operated on current fees but the system cannot be maintained and…