Westport Sewer rate study: consultants propose three commercial classes, phased increases

Theresa Iritich of Raftelis presented the next phase of the Westport Sewer Service District rate study, which builds on a March financial plan and recommends cost‑of‑service rate design with modest annual revenue adjustments of about 3.5 percent.

Theresa said the district is targeting a reserve equal to 25 percent of annual operating costs and recommended reducing six commercial volume categories to three classes based on septic‑hauling trips per year. She described the rationale: septic‑hauling trips are recorded by the district and are more stable year to year than water‑use data.

For fiscal‑year 2027, the consultant showed proposed monthly bills that would hold many residential rates steady while shifting more cost to higher‑use commercial customers. A blended Commercial 2 example was shown at $150 per month; "Commercial 2" customers in the proposed structure would see a $165 monthly bill, and Theresa said Commercial 3 customers would see "a bill that would go increase from 240 a month to 276 per month." She emphasized a slow phase‑in over a 10‑year horizon so the district does not immediately reach full cost‑of‑service levels.

Commissioners asked how many commercial entities populate each class and how losing a commercial customer could affect reserves and future revenue adjustments; Theresa said there are only a few commercial customers and losing one would draw down reserves faster, potentially requiring larger revenue adjustments in later years. The study is funded in part by the US Water Alliance (via EPA funds) and staff said they will conduct public outreach before any adoption.

Next steps: continued outreach, a final rate recommendation and a formal adoption process. The board did not vote on rates at this meeting.