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Seaside council adopts modest water and sewer revenue increases, shifts charges toward larger users
Summary
The Seaside City Council adopted two resolutions to raise water and sewer revenue by about 3% to cover inflationary operating costs. The water increase falls largely on commercial and large-meter customers; the sewer increase is split roughly 60% commercial/40% residential. Council emphasized a forthcoming formal utility rate study.
The Seaside City Council on May 11 adopted separate resolutions to increase utility revenue for the city's water and sewer funds by roughly 3% to cover inflation-driven operating costs.
The increases, which staff said are intended to be an interim, inflationary adjustment while the city completes a formal utility rate study, redistribute responsibility between customer classes rather than adding the same percentage to every account. The council voted to place the water revenue adjustment largely on commercial and large-meter customers (one-and-a-half-inch meters and larger), while allocating the sewer adjustment about 60% to commercial customers and 40% to residential customers.
Zach (Finance Director) told the council that residential customers currently account for about 55% of water use but contribute 61% of water-rate revenue under the existing structure because of how the base charge is set. "Larger meters represent greater potential demand on the system," Zach said, recommending shifting more of the water increase to the commercial accounts that impose greater peak and capacity demands.
For sewer, staff noted the system's costs depend not only on volume but on treatment complexity, peak flows driven by visitors and variable biological loading. The recommended split, staff said, recognizes system impacts from both residential use and commercial wastewater strength.
Under the changes approved by council (effective on the billing cycles outlined by staff), an average residential customer will see a modest increase: about $2.24 per two-month billing cycle, staff estimated. Commercial customers with larger meters face a larger base-rate change: for example, a six-inch water meter base rate shown in staff materials increased from approximately $891 to $983 (two-month billing). Detail-level rate tables were included in staff materials.
Council members and staff stressed these adjustments do not remove the need for a full rate study and longer-term capital funding plan. "These rate adjustments help each fund keep pace with inflationary operating costs," Zach said, "but they do not solve the long-term capital needs." The city has contracted or solicited proposals for a formal utility rate study to refine cost allocation and capital funding strategies.
Councilors voted by voice to adopt Resolution 4082 (water access, demand and consumption charges) and Resolution 4083 (sewer service user rates). The measures passed with no recorded roll-call opposition.
The finance director and public-works staff urged residents and large users to expect additional rate-related conversations when the utility master plans and the formal rate study return to council later this year.
