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Council approves $15,000 engineering supplement to refine water-rate options
Summary
The Washington City Council approved a $15,000 supplement to CMT’s contract to develop two funding alternatives for major water projects, including the Business 24 water main and Water Tower 3; the motion passed 8–0 after council debate about rate impacts and funding equity.
The Washington City Council voted unanimously June 2 to approve a $15,000 supplement to an engineering contract with CMT so staff can produce two distinct alternatives — a short-term option that defers some work and a long-term option that funds the Business 24 water-main project now — to inform a proposed water-rate change.
Council members and staff said the supplement will help clarify how to fund large, aging water assets such as Water Tower 3 and Well 13, and the Business 24 water-main replacement. City administrator Dennis told the council that the short-term approach removes the Business 24 project from immediate rate calculations to limit near-term increases, while the long-term option rolls that project into current rates to produce a smaller cumulative increase later.
The discussion centered on who should bear the cost. Alder person Blendy and others asked whether alternatives could include non-rate funding; staff said best practice is to fund water projects from an enterprise fund (the water rate), because many customers in the city receive water from other suppliers and cross-subsidies would be inequitable. Alder person McIntyre and Alder person Martin both urged exploring additional funding mechanisms and protections for low-income residents as the council considers final rate decisions.
McIntyre moved approval of the $15,000 supplement; Smith seconded. The motion carried 8–0. Staff said the supplement would generate rate projections for both alternatives, including estimated short- and long-term bill impacts, to support a future council decision and potential application to the state revolving loan program.
The council did not adopt a rate change at the meeting; rather, the approved supplement directs engineers to model funding scenarios and provide information the council requested about distributional effects and timing. The city expects the consultants to present results to the council for further action.
