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Preston City Council approves sewer rate increase to help fund $69 million wastewater project
Summary
The council adopted Resolution #174 on April 14, 2025, raising residential and commercial sewer rates effective May 1 to cover an approximately $69 million wastewater treatment plant; the loan totals $32,268,000 with annual repayments of $1,187,336 starting August 2026.
The Preston City Council on April 14 approved Resolution #174, adopting a revised license and fee schedule that raises monthly sewer rates effective May 1, 2025.
Preston City Treasurer Kelly Mickelsen presented the financial case for the increase, saying, "The wastewater treatment plant total project cost is approximately Sixty-Nine Million Dollars ($69,000,000)." She told the council the total loan is $32,268,000 and annual debt service will be $1,187,336 beginning August 2026; most of the loan carries a 1.75% interest rate and a smaller portion 2.75%. Under the adopted schedule the residential base rate rises from $34 to $65 monthly; commercial and apartment classes were also increased in the table presented to the council. The council voted unanimously to adopt the resolution.
City Clerk Linda Acock read two written comments from resident Robert Kooren urging the council to consider the length of loan payback and operational costs; Kooren asked the council to weigh the burden on future generations. Councilmembers Todd Thomas, Chris Larsen and Terry Larson expressed reluctant agreement that the increases are necessary; Attorney Lyle Fuller confirmed that future budget and rate hearings may be combined if properly noticed. The resolution takes effect May 1, 2025.
