The Wahkiakum County Eagle - Established as The Skamokawa Eagle in 1891

The Cathlamet town council on Monday took initial steps to raise water and sewer rates for customers of its utilities.

The council is reacting to reports from an accountant and town staff who have stated that current rates aren't high enough to keep the two systems solvent.

Rates are set in ordinances, and the council voted to approve for first reading an ordinance temporarily increasing water rates 10 percent and sewer rates 20 percent.

The ordinance must be approved at two council meetings; the second approval should come at the council's November 21 meeting, with the higher rates going into effect in December and appearing on bills in January.

The rates are temporary. The council is planning further work on rates and will raise them significantly more.

Council Member Dick Swart said the temporary rate increases will appear in the 2017 budgets and start generating new revenue.

"This is just a place holder," Swart said. "We don't have the information we need."

The new ordinance states that a review of rates by town staff indicated "that rate increases of approximately 40 percent for water and 115 percent for sewer may be necessary."

The council had planned to hold a workshop on rates before the meeting, but that fell through.

A rate analysis requested of Rural Communities Assistance Corporation wasn't ready, and Council Member Andy Lea, who was to lead the workshop, had to be out of town for a week. The council will schedule the workshop when the analysis and council members are available.

Lea emphasized that the rates aren't meeting revenue needs for the two systems, and the council will deplete system reserves if the situation continues.

And the council action on rates needs to be more than a simple increase, he said.

"In the course of doing research, it has been quite enlightening," Lea said. "I think our rate structure is antiquated and needs to be updated to the 20th century," he said. "Most towns base sewer rates on water usage. Not ours.

"The total rate is not going to go down. We have to pay for the systems, and we have to make it equitable for everybody."

The resolution also states that the town's municipal code requires staff to review rates and expenses annually and analyze whether or not rates are sufficient to meet the financial needs of the utilities.

There have been no reports from former staff for eight years, said Mayor Dale Jacobson.