Pacific residents will see their utility rates increase next year.
Now, the mayor and City Council are asking locals to help them determine how much.
A public hearing on the matter has been set for 6:30 p.m. Nov. 14 at City Hall. Mayor Leanne Guier said the City must repair or replace aging pipes and other water-related mechanisms, such as pumps.
“We obviously don’t have enough revenue for the infrastructure that needs to take place,” she said. “We have an aging system, like any other city, so it would be to our benefit to start making some repairs and changes, or we’re going to have some serious issues.”
According to research by Katy Isaksen & Associates, which was presented Sept. 19 to the council, a single-family home that uses 700 cubic feet combined of water, sewer and storm drainage spends $103 per month. Isaksen’s study showed that the same water usage in neighboring cities, Algona ($105), Auburn ($123) and Sumner ($113), costs more. That same usage, according to Isaksen, would increase to $142 next year if the council elects to address all of Pacific’s water infrastructure needs.
“I was a little concerned with how hard of a hit it would be for our residents,” said Guier, adding that she prefers to address the infrastructure needs during a two-year period.
In addition to a water-rate hike, Pacific officials this month could finalize a tax structure for the Transportation Benefit District (TBD) that the council approved in July. A public hearing to discuss the plan has been set for 6:30 p.m. Oct. 24 at City Hall.
Pacific can set up a TBD, which would allow it to charge an extra vehicle registration fee and sales and property taxes to fund road projects through the Revised Code of Washington. Any money raised through a TBD must be used for road projects.
Transportation benefit districts have become more popular within the state – cities, such as Seattle, use them – and Pacific officials believe they could help repair deteriorating sidewalks and streets. Last year the City hired Infrastructure Management Services to complete a traffic study to help the City Council prioritize its transportation projects. Morgan said most of Pacific’s streets were between “ideal” and “awful” conditions. Maintaining that level, he said, would cost the City $250,000-$300,000 per year.
Public Works Director Jim Morgan estimated the City could generate $140,000-$150,000 per year in property taxes with an increase of 25 cents per $1,000 of assessed property value, while, based on research of vehicles licensed in the city, license tabs could generate $100,000-$110,000. An increase in the sales tax by two-tenths of 1 percent, Morgan said, would generate about $125,000 per year.
Based on his research of other cities with TBD’s, most have only taxed car license tabs, which cannot exceed $20 per state law without a vote. With voter approval, that tax could add as much as $100 per vehicle to the cost of registration.
