AH proposes creative solution to increased water/sewer rates

By RYAN LANCASTER

Staff Reporter

Airway Heights officials will ask for state permission to divert a percentage of city sales taxes toward wastewater treatment plant construction, lessening the need for proposed sewer/water rate increases next year.

City attorney Stanley Schwartz brought the idea to Airway Heights City Council last Monday, saying a similar concept has been used to help fund capital projects ranging from the Spokane Arena to a new Seattle Mariners stadium. Approximately 6.5 percent of sales taxes collected by cities go to the state, but Schwartz said a number of entities have successfully lobbied to garnish a fraction for local use – .17 percent in the case of the Mariners' stadium.

“The person buying a good or service never knew the difference, it was simply the state of Washington taking less money out of the community,” Schwartz said. “This is not a huge hit to the Legislature but it's a direct capital infusion to local jurisdictions.”

Council authorized the city manager and staff to travel to Olympia in late January, where they will lobby state lawmakers to pass legislation allowing cities and towns of less than 7,500 to divert some sales taxes for construction or rehabilitation of water or sewer systems.

Recently the city suggested raising 2011 general facilities charges for water hookups from $4,016 to $4,185 and sewer charges from $5,906 to $8,387 to start paying down $27.3 million in loans that paid for the wastewater treatment facility. The proposal has seen resistance from area developers who say the increases would affect their ability to sell homes in the city, although no comments were received during a public hearing at the Dec. 20 council meeting.

In light of Schwartz' proposal and because water/sewer rate adjustments are still being considered, Council opted to table the matter until the next meeting, which will be held Jan. 18 due to upcoming holidays. Councilman Matthew Pederson was absent.

Council also decided to table an ordinance raising the 2011 utility tax rate at 19.8 percent until the rate/fee resolution is worked out.

A service contract between the city and the West Plains Chamber of Commerce for next year was reviewed and Council discussed whether to sign up for a $2,500 “platinum membership,” which includes a $2,000 credit for services, or a $515 membership with fewer built-in extras. Councilwoman Charlotte Lawrence suggested the city should budget $2,000 for chamber services, enroll in the less expensive membership and then choose any added services “a la carte.”

“If we determine next year that we want to go further with different options then we can do that but I really do not see a financial need for a $2,500 membership when really we're only going to use maybe $1,300 (worth of services) this year,” Lawrence said. Council agreed and moved to approve the lower priced membership.

An ordinance adopting the final 2011 budget was passed, as were many other items:

•A resolution adopting 2011 strategic goals that include utilizing and maximizing reclaimed water, developing a new water source, building and maintaining a reliable source of funding for street projects and analyzing construction of new public facilities buildings.

•A resolution adopting a Council computer use policy to coincide with the purchase of iPads for Council use, part of an effort to save on labor and printing costs associated with council packets.

•A resolution showing appreciation to retiring Airway Heights police Sgt. Thomas Gravelle for his eight years of service.

•Amendments to the “performance requirements” and “payment by patients” sections of an existing interlocal ambulance agreement with American Medical Response.

•An agreement with Inland Northwest Bank that allows the city to earn more interest on their balance as part of a “reciprocal deposit program.”

•Acceptance of the SR2 Pedestrian Crossing Enhancement Project as complete.

•A change order for the water/sewer cost of service rate study, which increases the contract price by $6,000 to a total of $46,000.

Ryan Lancaster can be reached at [email protected].