City of Lacey to increase water utility rates by up to 5.0 percent

Last Thursday, the Lacey City Council discussed its plans to increase utility rates by up to five percent during the regular city council meeting.

Lacey Finance Director Troy Woo explained the differences between the current and the proposed rates. Under the present rate, Troy claimed that a regular Lacey household would usually pay around $104.21 every month to use 700 cubic feet of water.

For the proposed rate, Woo claimed that the average rate would go from $104.21 to $107.25. He noted that the increase depends on each water facility, as follows:

• Stormwater:  Under Ordinance No. 1591, stormwater rates would increase  4.5 percent.. The proposal would change the regular household rate from $11.87 to $12.40 per 700 cubic feet. The Finance director claimed that the increase would cover future capital needs to improve stormwater services.
• Sewer:  Under Ordinance No. 1592, the sewer rates would increase 5.0 increase effective July 1,  2021. The proposal would change the regular household bill from $21.94 to $23.04 for every 700 cubic feet. Woo explained that the increase would cover the cost of construction improvements needed to maintain the water quality in the area.
• Water: Under Ordinance No. 1593, the residential water charge will have a 5.0 percent increase. As a result, the city will impose a $1.74 increase per 900 cubic feet.

Woo also added that the current rates for the LOTT Clean Water Alliance would likely remain the same since the water facility had already implemented a three percent increase in January 2021. He noted that under LOTT’s current rate, a regular household would most likely incur a $42.23 charge for every 700 cubic feet. 

Lacey Mayor Andy Ryder was not pleased with the rate increases, saying “I am having a hard time increasing our rates this much.” He also recognized that the increase would be a “big expense to a lot of people.”

Based on the proposal, Woo admitted that Lacey would have one of the highest utility charges in the region, just next to Centralia. The finance director explained that these additional costs would provide consumers with consistent and predictable rate increases in the following years.

The mayor claimed that the increase was a part of the Capital Improvement Program (CIP). Under the six-year program, the plan requires capital facilities within Thurston County, such as sewers and water systems to identify specific facilities that need improvement, as well as provide feasible financing plans.

Councilmember Lenny Greenstein clarified, “keep in mind that the five percent is a fund to lower the future increase rate.” He added that the rate “would lessen the swing and prevent bigger jumps in the next few years.”

Woo agreed, “it's an investment of buying down that future rate.”