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Pasco delays vote on steep water and sewer connection fees after developer and council concerns; public sessions set
Summary
City staff proposed maximum connection fees of $6,148 (water) and $4,354 (sewer) and multi-year rate increases to fund a replacement of the Butterfield Water Treatment Plant. Council directed staff to hold community outreach and postponed final action to Jan. 20, 2026.
City of Pasco officials postponed a final decision on proposed water and sewer rate and connection-fee ordinances after an extensive presentation by staff and strong pushback from developers, realtors and some council members.
Deputy City Manager Risha Sigdell and Public Works staff explained two ordinance scenarios. Option A would enact maximum one-time connection charges (water $6,148; sewer $4,354) and phased monthly rate increases to help finance the city's planned Butterfield Water Treatment Plant replacement. Option B would cut connection charges roughly in half (water $3,074 under that proposal) and raise recurring monthly rates modestly instead. City staff said the Butterfield replacement could cost $220 million to $260 million and that the city is considering a mix of connection charges, low-interest loans and future rate adjustments to fund the work.
Developers, the Home Builders Association and the Tri-City Association of Realtors asked the council for more time to review the cost models. Matt Hyer of the Realtors said an $8,000 upfront fee can translate to roughly $40,000 to a buyer over the life of a mortgage, and Ken Pletzky and other speakers warned that higher connection fees would raise prices and shift development outside Pasco.
Council members expressed divided views. Several asked for more stakeholder outreach and model details; some said they supported spreading the cost to new growth. Councilman Morales moved to hold community feedback sessions for the development community and the public and to return the issue to the council meeting on Jan. 20, 2026. The motion passed unanimously.
The city will schedule at least two outreach sessions—one targeted to developers and builders and another for the broader public—before returning with the ordinances and related rate models. Staff stressed that the connection charges described are the maximum legally allowed and that council may set lower amounts if it chooses.
Next steps: staff will arrange the outreach sessions, provide detailed rate and cash-flow models, and return with a recommendation and ordinance language on Jan. 20, 2026.
