Washington Terrace staff outline utility-rate increases amid rising disposal and wholesale water costs

City staff (Staff member (S1)) presented anticipated changes to utility costs and recommended rate adjustments to maintain service levels.

On solid waste and recycling, staff said main cost drivers are collection contract adjustments and disposal fees. The budget presentation included a 4.7% indexed increase for waste collection and an assumed 5% increase to disposal fees (from $50 to $52 per ton). Staff noted a potential fuel-recovery surcharge if diesel exceeds $4 per gallon.

For culinary water, staff warned of ongoing pressure from the wholesale provider and projected "double-digit increases" in the near term, citing a 14–15% planning figure and estimating a $1.40 monthly increase to the minimum water bill. Staff also proposed a 3% annual inflation adjustment to capital-investment assumptions.

Sewer-treatment fees were projected to rise about 6% under the assessment formula, which staff said is 50% population-weighted and 50% property-valuation weighted. Staff noted an end to a five-year capital-lease payment would free about $89,000 in water-system capacity that the city proposes to roll into capital investment.

Overall, staff presented a utilities-rate package that would increase rates roughly 5% overall and translate to about a $3.95 change to the minimum single-family utility bill. Councilors asked clarifying questions about whether utility revenues could be used for non-utility capital (they could not) and requested more detail in the May budget packet.