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City staff previews 2026 water-rate model, cites Olympic gravity system costs and timeline
Summary
City staff previewed the 2026 water-rate update, described the Olympic Gravity Water System agreement with the local paper mill (raw water at $1.24/1,000 gallons), and outlined a schedule to enact new rates effective Jan. 1, 2027, with a draft due in September.
City staff presented an overview of the city’s five-year water-rate update process and the legal and operational context that will guide new rates set to take effect Jan. 1, 2027. The presenter said the city updates its water system plan every 10 years and reviews rates every five to ensure enterprise utilities pay their own costs and comply with Department of Health and EPA requirements.
The presenter said the city moved in 2021 to a usage-based water supply agreement with the local paper mill, which pays about $1.24 per 1,000 gallons for raw water. "That roughly equates to about $4,500,000 a year that the paper mill pays…
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