College Place council adopts six‑year capital plan, approves modest tax and utility increases to shore up reserves

College Place’s City Council on Nov. 25 adopted a six‑year capital facilities plan and approved related budget measures that city staff say are intended to preserve reserve levels while advancing a slate of infrastructure projects. The measures include staff recommendations to increase the city’s property‑tax levy by 2% and raise the utility tax from 10% to 13%.

Mister Carlton, who presented the plan, said the city anticipates roughly $53 million in capital spending in 2026 and about $179 million across 2026–2031, with individual projects contingent on grant and low‑interest loan funding. Major items highlighted in the plan include wastewater treatment plant improvements ($10,000,000 next year, funded largely by Department of Ecology grants and loans), the Mjolnir Road project (~$9,600,000), Reservoir 4 construction (~$8,000,000) and transmission main work (~$5,000,000), and the Lions Park Community Center (projected at ~$2,000,000). Staff said many projects are prioritized as high, medium or low and will move forward only if outside funding or sufficient reserves are available.

To help shore up current‑expense reserves, staff proposed two revenue adjustments. Mister Carlton recommended raising the city’s utility tax from 10% to 13% (including applying the tax to stormwater), which staff estimated would generate an additional $165,000 for current expense. He also recommended a 2% increase in the city’s property‑tax levy, estimated to produce about $66,000 in additional revenue. Mister Carlton said those revenue moves, combined with careful use of reserves, aim to keep the city in compliance with reserve targets while allowing capital work to proceed when external funding is obtained.

Councilmembers pressed for detail on specific line items and whether some planned spending should be removed or moved in time. Councilmember Sherman proposed removing a $6,000,000 Well‑9 amount erroneously listed for 2028; staff said the item should be removed and the ordinance adopted as amended. Councilmember Espinosa praised the budget work, saying, "the percentage sometimes looks scary, but as you break it down, it's only $6.50 over the year," and called the package fiscally responsible and mindful of residents on fixed incomes.

On operating rates, staff recommended leaving water and wastewater rates unchanged for 2026, while using the utility‑tax increase and modest stormwater and ambulance rate changes to rebuild reserves. Staff estimated the average residential monthly utility bill impact at about $6.58 annually under the combined rate and tax adjustments described in the presentation.

Council adopted Ordinance No. 25‑011 (FY2026–2031 Capital Facilities Plan) with the Sherman amendment to remove the duplicated Well‑9 entry, and adopted related ordinances for the equipment replacement and information‑technology plans at the same meeting. Final adoption of remaining budget bookkeeping items is scheduled for the Dec. 9 council meeting.

What happens next: the council scheduled final budget adoption for Dec. 9. Projects listed in the capital plan will proceed only after staff secure the grants, loans or reserve transfers needed to fund them. The city’s public works and finance staff will return with implementation steps and any required contract approvals when funding is confirmed.