Cosmopolis workshop: city warns sewer contract gap could mean higher rates as it negotiates with Aberdeen

At an Oct. 1 public workshop, presenter Tara laid out a multi-year accounting of Cosmopolis’ sewer fund and told council that the city’s contract with Aberdeen expired in 2023, leaving Cosmopolis with a pattern of late invoices and uncertain bills from the treatment provider. "It is absolutely true that money is owed, but how much money is owed is up for negotiation if it would not be appropriate for Cosmopolis to make a payment without a contract," Tara said, describing why staff recommends negotiating before making additional payments.

Tara told attendees the prior contract used a complicated formula that applied Cosmopolis’ percentage of total flow to Aberdeen’s operating, capital and debt budgets. That method made bills volatile: she said the five-year average invoice was roughly $288,000 and that the city at times paid only a fraction of billed amounts, leaving a gap between cash-on-hand and outstanding invoices. Tara said the city paid up through service year 2023 in 2024, but there is no current contract for 2024 and the amount due for recent service has not been finalized.

Why it matters: Aberdeen’s capital spending can sharply raise Cosmopolis’ share under the old formula. Several speakers warned that if Aberdeen’s board holds to a percent-of-capital approach, Cosmopolis could face very large bills tied to Aberdeen’s schedule of capital projects. One participant said a remembered share figure was about 12%, while others referenced a historical 20% allocation under the old contract; Tara emphasized those percentages are matters for negotiation.

Officials recommended approaching Aberdeen for a predictable, fixed fee or a flat monthly rate to allow consistent cash-flow planning. The mayor and council members said the city is commissioning a formal rate study and convening a sewer committee and a volunteer tech team (Donnie Fowler was named as the city’s lead public-works contact) to scope infiltration/inflow issues and identify the city’s own capital needs.

Residents asked technical questions about meters and how inflow spikes with rain affect Cosmopolis’ measured share. Utility staff said the city maintains flow meters and that Aberdeen is upgrading instrumentation to reconcile measurements. Tara and staff clarified that sewer revenues are restricted to sewer-related expenses, noting the fund has been used to pay allocated portions of staff and operational costs.

The administration said it will seek a negotiated settlement with Aberdeen, pursue a rate study, and aim to move away from the unpredictable percent-of-flow formula. "We are going to negotiate and try to be on a yearly basis not behind," the mayor said, adding that Aberdeen has been a partner while the cities work through required upgrades.

Next steps: council members and staff said they will pursue negotiations, complete the rate study, and bring proposals about rate structure and any rate increases to future workshops or council meetings for deliberation.