The Metropolitan King County Council today voted unanimously to set the wholesale sewer rate for 2007 at $27.95 per month, a rate lower than initially proposed. The monthly sewer rate supports maintenance and operation of the county’s existing wastewater treatment system and is paid by all of its customers in areas of King, Snohomish and Pierce Counties.

The Council’s Operating Budget Committee worked to reduce the final rate to $27.95 from the Executive’s original proposal of $28.50. The former rate was $25.60.

“Thanks to the Executive’s successful wastewater bond sale and further efficiencies identified by the Council, we are able to reduce the size of the rate increase,” said Councilmember Dow Constantine, chair of the Operating Budget Committee. “We know ratepayers want reliable wastewater services at the best price possible.”

“Ever since the Metro-King County merger in 1994, the County Council has saved homeowners $211 million over Metro’s projected sewer rates by reducing the utility’s debt service costs, cutting operating costs, and reducing interest rates by improving its bond rating. Ratepayers have kept this money in their pockets,” said Councilmember Larry Phillips, chair of the Council’s Regional Water Quality Committee. “We’re managing wastewater costs carefully for the present and the future, and protecting Puget Sound and our waterways for generations to come.”

Through a series of contracts, King County provides wastewater conveyance and treatment for 33 cities and sewer districts in King County, south Snohomish County and a small portion of Pierce County. Today’s vote meets contractual obligations to have the sewer rate for the coming year in place by June 30. The county attempted to arrive at an even lower sewer rate and avoid increases by negotiating contract extensions with all cities and utility districts. Contract extensions from 2036 to 2056 would have enabled the county to issue longer-term bonds of 30 to 35 years, with more favorable terms and interest rates. However, of the 33 agencies with contracts with the county, to date only the cities of Renton and Carnation, the Vashon Sewer District, and the Muckleshoot Indian Tribe have signed extensions.

The Council vote also increased the County’s wastewater capacity charge from $34.05 to $42.00 per month. The capacity charge is paid by owners of newly-constructed homes and businesses for the capital costs of providing new treatment facilities, including Brightwater, King County’s third wastewater treatment plant. The monthly capacity charge is assessed for 15 years after connection, but property owners can save 5 percent if they choose to pay a lump sum upfront.

“We’ve strictly followed the principle of ‘growth-pays-for growth,’ ending the subsidy of growth in the system by those who already paid for it,” said Phillips. “As new homes create increased demand for wastewater services, this capacity charge ensures that new customers pay for their share of new infrastructure.”

Read more about this legislation on the King County Council’s LEGISEARCH system.
Type in “2006-0182”