City set for utility rate study in 2017

Leavenworth city officials are set to conduct another utility rate study this year. The last utility rate study was in 2011. The studies, which typically look five years into the future, are critical in terms of setting rates for the various utilities, which must, by law, pay for themselves.

“It covers all the utilities, garbage, water, sewer, stormwater. The two most dependent on the rate study is for water and sewer. The rate study looks at the city utilities, in terms of how they function financially, then makes recommendations on the rates to keep them functioning financially,” said City Administrator Joel Walinski, at the Feb. 14 city council meeting.

The Chelan County PUD is funding a $150,000 utility regionalization study, as reported in the Echo last week. Critical to that utility regionalization study is each city providing current utility information.

Walinski said it is important to get the city’s utility rate study moving forward right now, so that information can be fed into the utility regionalization study. The funding for the study is within the city’s 2017 budget.

The city is currently planning a multi-million dollar upgrade to the wastewater treatment plan to reduce the amount of phosphorus going into the river, per state mandate. Walinski believes this study will be good for that effort, because Varela engineers have already looked at various improvements and the potential impact on rates.

“I think it would be worthwhile to get an outside look at the information going forward, depending

how much money for the project is a loan and how much is grant,” Walinski said. “I think it sets the rates. The rates will be set on the current status.”

Councilman Elmer Larsen said there is a value, getting a baseline for water and sewer, especially going into a regionalization study.

“We need to be able to compare with the others,” Larsen said.

The city council approved a request for proposals that will be advertised for a utility rate study.

Ian Dunn can be reached at 548-5286 or editor@leavenworthecho.com.