City of Leavenworth decides on utility rate increases for 2025

LEAVENWORTH – Utility customers within city limits will see a rate increase in 2025 in order to make significant upgrades to an aging system.

“We have very old infrastructure that has reached its design life,” said Public Works Director Andi Zontek-Backstrum during a special meeting with the City Council on Dec. 17 to decide rates before the new year.

In 2023, 22 percent of the water produced was lost due to leakage, over double the Department of Health’s under 10 percent recommendations. Zontek-Backstrum raised concerns that system issues could result in backflow and potential contamination, as well as lack of fire flow when needed. 

Surface water was also a cause for concern regarding the city’s combined sewer and stormwater systems in the Ski Hill basin. Manholes with open flow channels are at risk of cross contaminating sewer and stormwater in the event of stormwater surcharge or a sewer backup.

“This is a big issue, and it’s something we need to address,” said Zontek-Backstrum. 

For water, the 7,500 gallons per month per meter allowance was removed. Residential monthly base rates will see an increase of about 3 percent, or $77.36 to $79.52 for a three-quarter inch meter. Consumption rates start at 98 cents per thousand gallons for the first 4,000 gallons used and incrementally increase.

Multifamily monthly base rate will see an increase from $17.87 to $23.56 per residential unit inside city limits. The consumption rate was slightly lowered, at a flat rate of $1.14 per 1,000 gallons.

For commercial water uses, monthly base rates will see an approximate increase from $45.48 to $57.18 for a three-quarter inch meter. The flat consumption rate is $1.44 per 1,000 gallons.

For sewer, there are slight increases for multifamily monthly rates, from $35.52 per dwelling unit to $37.99 per dwelling unit, and commercial, from $68.60 per Equivalent Residential Unit (ERU) of water used to $80.61 per ERU. Stormwater monthly rates will increase from $6.16 to $6.28 for residential and multifamily and commercial low impact. Solid waste rates have varying changes.

Financial Director Chantell Steiner presented a number of examples during the meeting to illustrate average increases. A single family home with a three quarter inch water meter will see about an average of $12.14 increase in monthly rates for water, sewer and stormwater. A multifamily structure with 30 units would see an average increase of $9.36 per unit. However, a six-unit multifamily structure would pay about $13 more per unit. 

For a small commercial account with no grease, their monthly average increase would be approximately $34.65. A large restaurant with a one inch meter would have an average $285.97 monthly increase. A medium to large restaurant with a two inch meter would see a $292.65 increase. A 100-room hotel would see a $583.61 increase.

“You guys are going to definitely get some pushback when we roll this out. And I don’t think you’re going to get as pushback from those single family residentials as you’re going to get from these businesses,” said Steiner. “Andi is right. We are in dire need, and we need to move forward, but I want you to see the magnitude of all the different effects on the different users.”

Additionally, the City Council chose the desired System Development Charge (SDC) for each utility. SDC’s are paid by all new utility connections. For water, City Council went with 50 percent of the maximum allowed under state law. The new rate would increase the SDC rate for a three quarter inch meter from $3,898.80 to $6,685.00. The city chose not to increase the rates for the other utilities.

Lastly, the right-of-way permit fee for the maintenance of an existing sidewalk was dropped from $100 to $35, in order to reduce the burden of businesses required to maintain the footpaths in front of their stores.

Taylor Caldwell: 509-433-7276 or taylor@ward.media