Preston adopts sewer-rate increases after public hearing; changes take effect May 1
Summary
After a public hearing and council deliberation, Preston adopted Resolution 174 to raise water and sewer fees to help cover the new wastewater treatment plant loan. Council members said the initial increase will not fully cover loan payments and further adjustments may be needed at budget time.
The Preston City Council adopted Resolution 174 on a motion from Councilman Dodge and a second from Council Member Chris Larson, approving a new license-and-fee schedule that raises residential and commercial sewer rates. Treasurer Kelly Mickelson presented the financing details during a public hearing, saying the overall project is "around 69,000,000" and that the city’s total loans are about "$32,000,268," producing an annual payment projected at "$1,187,336." Mickelson warned that the increase under consideration "will not be your final rate" and that council should expect another rate adjustment at budget time.
Several residents and a written commenter (read into the record) urged the council to weigh shorter amortization or balloon-payment options to reduce lifetime interest. Mr. Koren’s written submission—read by the clerk—argued a longer, low-monthly-payment plan could add roughly $24,000,000 in interest over 40 years and recommended a 15-year payback if feasible. Council members discussed mitigation for low-income customers and directed staff to include affordability options in future budget workshops. The mayor announced the resolution "will go into effect May 1, which essentially is the next billing period."
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