Preston council adopts sewer rate increases to help repay $32M in loans; rates effective May 1

The Preston City Council voted to adopt Resolution 174, which updates the city’s license, fee and water/sewer rate schedule, after a publicly noticed hearing and staff presentation. The council moved the resolution on a motion by Councilman Dodge with a second from Council Member Chris Larson; the mayor announced the action will take effect May 1, the next billing period.

Treasurer Kelly Mickelson told the council the wastewater treatment project totals about "69,000,000" and the city’s loans on the project total $32,000,268, with a projected annual debt payment of $1,187,336 beginning in August 2026. Mickelson outlined the proposed new rates (residential: $34 → $65; commercial low: $36 → $69; commercial high: $56.50 → $108; apartments/motels: $36.25 → $70.25) and emphasized the rate action is a phased step that will not fully cover the long‑term loan payment and that further adjustments may be necessary at budget time.

Council members discussed options to soften impacts on low‑income residents, including exploring a circuit-breaker style assistance program, and asked staff to provide more granular rate‑study data for high commercial users. After public notice, written comment from a local resident (Mr. Korn) recommending a shorter payback period was entered into the record; no in‑person opposition testimony was given during the hearing. The council adopted Resolution 174 by voice vote; the mayor stated the resolution "will go into effect May 1."