Water rates, tax levy projected to increase in Prescott

Posted 10/11/22

PRESCOTT – The Prescott City Council approved a plan at its meeting Monday, Oct. 10 to apply for a simplified 4.5 percent rate increase with the state Public Service Commission. The rate would go …

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Water rates, tax levy projected to increase in Prescott

Posted

PRESCOTT – The Prescott City Council approved a plan at its meeting Monday, Oct. 10 to apply for a simplified 4.5 percent rate increase with the state Public Service Commission.

The rate would go into euect Jan. 1. It would be projected to increase the average residential water portion of their utility bill by $2.39 per quarter. It would bring the city water utility $26,200 annually.

That increase will go along with a propos – al from the council's finance committee from a meeting Thursday, Oct. 6 for a 9.6 percent increase in the tax levy this year that will be voted on at the city budget hearing at the Nov. 28 council meeting. The committee reviewed budget requests at the meeting and decided it needed to levy at a higher level this year.

It was noted that because the Prescott School District cut its tax rate this year, it could have an euect where the overall city resident tax bill will be similar to a year ago. However, City Administrator Matt Wolf said the city portion of the bill will be up. He said the city slice of the property tax bill for a home valued at $350,000 would increase by $108.

"Overall, it could stay flat because the school backed ou this year," said Alderper –

son Pat Knox.

Of the committee budget discussion, May – or Robert Daugherty commented, "We came to an agreement to raise the levy 9.6 percent. To cover all the things we're able to fund, we needed to do that.”

Alderperson Bailey Ruona, who sits on the committee, voted in opposition of that levy option.

"I did not support it," she said. Alderperson Thomas Oss said that the levy isn't set until the hearing in November, after which the council ratifies the budget.

"We're going to be having a vote whether to accept the budget in November. The agree – ment of the committee does not predicate the vote at that time. I think it's important to get things out to the public before we reach in their pockets," he said.

The city intends to make Facebook and website posts about the budget and the water rate increase, as well as to send information out to utility customers.

As far as the water rate increase, it will be used to help the city come up with funding for two large projects in 2023: the necessary work for remediation of nitrates on its Well

#3 and street reconstruction for Locust Street and Elm/Washington Street.

The city’s utility has $87,276 available for debt service, and an additional $250,000 would be necessary to fund both the well and street projects.

"This would be just a tenth of what we need," alderperson Pat Knox commented. Knox voted against applying for the increase on the grounds that the community hasn't been informed before the council vote, since it just came up at committee last week.

"Is this something that can next year be lowered back?” he asked.

"It can only go up," Wolf said, referring to the simplified rate increase scenario. Howev – er, he said that if city applies to the PSC for a full rate study, the agency could say rates have to be lowered, though that would be ex tremely doubtful.

The finance committee recommended council approval of the simplified water rate case route. It's likely the first step toward the full PSC review of Prescott’s rates, which hasn’t been done for many years and could lead to higher rates phased in over time after that is completed.

“We haven’t done a rate study in a really long time," said Alderperson Daryln Hintz. Oss asked if the vote on the water rates needed to occur now or it could wait “so the general public has a chance to react and come here and voice their opinions," he said.

Wolf said there's a 45-day period to imple – ment the new rate, so it has to be in place by mid-November, ahead of the budget hearing.

He said that the city will work to get the word out, and an ovcial notice on the rate increase application will appear in the Pierce County Journal.

"There still will be an opportunity for citi zens to voice their concerns,” he said.

"If a group of people voice their concerns following tonight, what happens then? Is there an opportunity to rescind what is done tonight?" Oss asked.

Wolf pointed out if the option would be to not move forward with one of the road proj ects or to move ahead with a full rate study.

“The key is once you submit to the PSC, you're locking in to whatever they say," said Wolf.

Knox was against making the rate increase without first informing the community.

"Everything we can do to share that the best we can instead of just doing that, that's my thought," he said.