Increased water rates

Fife City Council approved the second reading of an ordinance that will increase the city’s water utility rates over the next six years.

The council chose an equalized rate increase that will allow a gradual increase of 20 percent through 2012, a 3 percent increase 2013-14, and a 2 percent increase in 2015. The increases are scheduled to take effect by the end of February.  

“We don’t have a lot of options,” Councilmember Don Alveshere said. “Holt Well provides us some flexibility, so that we’re not dependant on other utilities for services.”

During a Jan. 26 public hearing, city staff told council members that the cause for these increases stem from three main factors – the city’s development of Holt Well as an additional water supply for the city, higher cost associated with buying water from the city of Tacoma, and stricter legal standards for water purification.

Development and testing of Holt Well began last February. The city estimates that Holt Well will be online by 2012. Once the well is online, the city will reduce the amount of water purchased from Tacoma down to levels not seen since 2004. The city currently owns six wells, but most were shut down due to higher levels of arsenic.  

Currently, the city purchases all of its water from Tacoma. For the past 12 years, Tacoma has steadily raised its water rates an average of 9.5 percent per year. The city of Tacoma has recently announced two major water rate increases, the first taking effect this year and the second in 2014-15. The city is currently buying water at a higher rate than it is selling it to residents. This has caused the city to lose money on each gallon of water sold.

City staff also stressed the importance of developing Holt Well as an alternative to purchasing water solely from Tacoma. This alternative water supply could make Fife less vulnerable to water rate increases from Tacoma in the future.

“I’m glad we’ve taken a different direction with regard to wells in our city,” Councilmember Rob Cerqui said. “I don’t like increases, but we can’t buy water for more and sell it for less.”

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