Utility bills are the big issue in Washougal. They should be.
In 2012, the minimum bimonthly residential charge was $174.60. That base charge went up 20 percent ($37) to $211.13 this year. But the Council could take action on Jan. 22 that might keep the increase to less than $10. If the increase is kept that low, it will be the result of a creative Council, mayor, and staff. This would not have happened without hearing from our citizens.
The reduction comes from two potential changes. Most would come from a one-year utility tax cut paid for out of excess general fund reserves. Most of the cut will come in the form of a flat reduction for residential customers who pay a high minimum base rate. The remainder of the reduction will come from adjustments to the underlying rate accomplished by delaying some planned system improvements. The utility tax cut is Council-initiated. The rate cut is Mayor and staff-initiated.
The general fund excess reserves, which will pay for the cut, were built up over the past few years. The city has been carrying excess reserves well beyond that recommended by municipal finance experts. Using these funds will not put the city at any financial risk barring some unforeseen catastrophe.
When the draft budget was rolled out last fall, the first thing I noticed was that one of the highest increases in projected general fund revenue for the city was utility tax revenue. This is because the underlying utility rates were going up and utility tax revenue goes up right along with it. I had a problem with that because not only was the city government not sharing in the pain of these huge utility cost increases, it was actually benefiting from them.
This is a one-year fix and the biggest objection I’ve heard to this cut in taxes is what will we do next year? The financial practices of the current administration have been quite an improvement from the past. I believe rates can be lowered longer term by continuing those practices and excess general fund reserves will build up again. Or we just might have to cut elsewhere.