Preston council approves new $9,000 connection fees, raises sewer monthly rate and water overage after public hearing

Preston City Council voted on multiple fee changes Tuesday after a public hearing that drew developers, business owners and dozens of residents concerned about housing affordability and burdens on seniors.

The council set uniform connection fees of $9,000 for both sewer and water, approved a $23-per-month increase to the base monthly sewer charge and raised the water overage fee by $0.25 per 1,000 gallons over the 40,000-gallon allotment. The body tabled formal adoption of Resolution 178 — the written fee schedule — until its January meeting and set an effective date for the rate changes of Feb. 1, 2026.

Mayor Keller, who presented the city’s rationale as the applicant, reminded the council that judicial confirmation and state and federal grants funded more than half of the wastewater plant project. “We have incurred some indebtedness; we are asking for increases in fees,” he said. Treasurer Kelly Mickelson outlined the debt-service need, citing an annual payment on existing financing and a pending DEQ loan; Mickelson told the council the sewer enterprise fund reserve is about $1.7 million.

Public comment was extensive. Developer Tony Crockett, who said he has projects totaling hundreds of housing “doors,” said higher hookup fees could slow construction and shift costs to buyers. “If we hinder…because we have to double the 3.8 to 6,000,000, that will…slow everything down,” Crockett said. Opponents including Bailey Johnson and Forrest Cole argued the increases would price young families and seniors out of the city. Johnson recommended water-conservation measures such as alternating watering days instead of fee hikes.

Council debate focused on balancing debt obligations, system replacement needs and housing affordability. Councilmember Todd Thomas recommended separating minor fee changes into an en bloc vote and reserving individual votes for connection and major service fees; that procedural motion passed. Councilmembers advanced options ranging from leaving fees unchanged to the advertised ceilings; after discussion the council approved the uniform $9,000 connection fees for both water and sewer. The water fee motion carried with one recorded 'nay' from Councilmember Chris Larson.

On the monthly sewer charge, staff and the city’s wastewater operator presented operating and debt projections; Treasurer Mickelson said meeting the projected debt-service would require roughly a $21 monthly increase, and the mayor recommended $23. The council approved a $23 increase to the base rate (with proportional increases for additional units) by voice vote, with one council member opposing.

Councilmember Todd Thomas also secured approval to raise the overage charge by $0.25 per 1,000 gallons to encourage conservation; Thomas stressed the overage is intended for choice watering and that leak events reported promptly will not be charged.

Although council members agreed on the numeric changes during deliberations, they decided to table formal adoption of the full resolution so staff can prepare a clean, printed ordinance with the agreed figures. The council scheduled final action for its January meeting and set the new rates to take effect Feb. 1, 2026.

Votes at a glance:
- Consent calendar: approved (voice vote).
- Close public hearing: approved (voice vote).
- En bloc minor fee changes (return check fee, hydrant fee, subdivision engineering review fees, etc.): approved (voice vote).
- Sewer connection fee: single uniform fee of $9,000 — approved (voice vote).
- Water connection fee: single uniform fee of $9,000 — approved (roll call: Dodge Aye; Terry Larson Aye; Chris Larson Nay; Thomas Aye).
- Water overage: increase $0.25 per 1,000 gallons — approved (voice vote).
- Monthly sewer base rate: increase $23 (to $88 as presented) with proportional additional unit charge — approved (voice vote, one recorded dissent).

What comes next: The council tabled final approval of Resolution 178 until the January meeting so staff can publish the ordinance cleanly; the rate changes would take effect Feb. 1, 2026 if adopted then.