Cashmere City Council votes for water and wastewater rate increases

CASHMERE - The Cashmere City Council, in its Feb. 26 meeting, approved rate hikes for water and wastewater services, sanctioned the vacation of parts of Spring Street, and authorized significant amendments to the city's off-street parking regulations.

With a 3:2 split vote, the Council authorized a 7% increase in water utility rates, effective on March 1, 2024, with a 7% increase annually through 2026. Mayor Jim Fletcher clarified that in 2024 the 7% is in addition to the 4% increase, that was effective Jan. 1, and will result in a total 11% rate hike in 2024.

Jeff Johnson, Shela Pistoresi and Jayne Stephenson voted for the increase. John Perry and Chris Carlson voted against the 7% bump, but they argued that an even greater increase is needed to build the city’s capital fund reserves. Perry suggested that a 10% increase would be required to stay ahead of inflation and to build the reserves. He told the other Council members that based on his calculations, the city is charging less to produce the water than it costs to clean and distribute the water. He added that historically, the city would make $1, which could go into the capital fund, for every 1000 gallons of water it sold, but that last year it only made about 30 cents.

At previous City Council meetings, Mayor Jim Fletcher recommended the increase in rates and explained that the city had not adequately funded the water capital reserves during the last few years. The reserves, he said, need to be addressed, as well as required and unanticipated repairs or equipment replacements. According to Fletcher, the city is covering the costs of producing water, but has not been covering the cost of future improvements or replacements. Carlson stated that he agreed with Perry that a 10% rate increase is needed for the next three years. Council member Shela Pistoresi replied that she would vote against that much of an increase.

As the result of another 3:2 vote, Cashmere’s wastewater rates will rise an additional 1% on March 1, 2024, and then 3% in both 2025 and 2026. Fletcher clarified that the 1% rise is in addition to the 2% increase that was effective Jan. 1, resulting in a total 3% rate hike in 2024. Perry and Carlson voted against the increase, again arguing that they felt the rate increase should be higher. Perry said a 5% jump is needed, explaining that he calculated a 4.6% annual increase in costs for the life of the wastewater plant. He stated that the revenues from wastewater services are down about $500,000 from five years ago. Johnson pointed out that inflation rates are projected to be decreasing over the next few years, potentially decreasing the operating costs. Perry responded that he would prefer to look at how the city’s expenses have changed historically. Carlson asked Dorien McElroy, Wastewater Plant Manager, her views. She replied that the plant is still fairly new, but it is getting to the point where maintenance is anticipated for some portions of the plant. She said a huge upsurge in the costs for chemicals used at the plant has significantly impacted expenses in the past year. Responding to Perry, who asked if she anticipated the need for more capital projects, she said, yes. 

Fletcher expressed his view that it is necessary to raise rates to build reserves for future costs, but to find a balance that is tolerable for the city’s customers, who are buying water and paying for sewer services. He stated that the combined monthly cost of water and sewer being over $150 creates a hardship for families.

With a 4:1 split vote, the Council approved the city vacating portions of Spring St. and selling the property to Al Kennedy, Blaine, and Jaqueline Smith. Fletcher explained that “vacating a portion of city right of way is intended to return land to the adjacent private property from which the right of way was obtained.” The vote followed a public hearing, a result of a petition to the city from Kennedy and the Smiths. During the hearing, Blaine Smith told the Council that some portions of his property are not really useable because of the road, which goes through the middle of his property. Kennedy explained that the street dead ends into his property, which surrounds 3 sides of the street. He continued that the road is very steep and not useful. Fletcher added that the road can’t connect to anything, and Johnson said that the location of the road doesn’t make sense for the city to keep it. Perry, who voted against the Ordinance, described his concern that the rate of compensation the city would receive was about 25 times less than what the city paid for the property as part of the Sunset Highway improvements. Cashmere’s Permit Specialist, Tammy Miller, outlined how the city’s code dictates the compensation rate. Perry also expressed concern that the Ordinance stated, “the City Council has determined that it is in the best interest of the City to vacate”, but stated that he did not see how selling the property met that criterion. Council member Jayne Stephenson replied that she understood his point but that the city also needs to keep in mind the best interests of its residents. 

Changes to the city’s parking code and requirements were updated with a unanimous vote. The changes will reduce the amount of off-street parking required by commercial enterprises, allow businesses to utilize additional city lots as part of their required parking, and the new code will provide an avenue for a business to request a reduction in the amount of required parking. Director of Operations Steve Croci had previously described the changes as pro-business.

Cashmere Planning Commission (CPC) Chair Zak Steigmeyer told the Council that the CPC was thinking long-term about the future of the city and welcomes input from the Council about topics that should be investigated. He recommended that the city and Commission begin looking at city codes to determine if any of these were hindering development within the city.