Palouse utilities to see six percent hike

Palouse residents can expect an increase in their sewer and water bill by next February. The Palouse city council is preparing to add a six percent utility tax on all city sewer and water bills to offset the town’s struggling finances.

The average water bill in Palouse runs about $30 in the summer, said City Clerk Joyce Beeson. With the utility tax, a water bill of $30 would increase to $31.80, Beeson said.

Palouse charges a flat fee for sewer of $21. With the tax, residents can expect to have $1.26 added to their bills.

Citizens can express their opinion at a public hearing on the tax Nov. 10 at 7 p.m. The preliminary hearing on the Palouse budget for next year will also be part of that council session.

Because the city general fund has been receiving less in state sales tax equalization funds, general fund revenue has dropped. Another budget factor is less revenue off interest on city short term investment accounts. Interest is down to .45 percent from 5.2 percent in 2007.

“It’s just been slipping away,” said Beeson.

To save costs, the city also plans to open the city pool two weeks later next year and return to its regular closing date, Beeson said. The pool this year closed two weeks later than it usually does.

If citizens vote in the utility tax, the city stands to gain $18,000 over 12 months.

Income from the tax will go into the general fund to boost the budget. Revenue from water and sewer billing goes in to a separate account.

Beeson said the city has had the option of adding the utility tax under state law, but so far has opted not to do so. The drop in revenue has led the city to take the action.

Interest rates earnings are through the Washington State Local Government Investment Pool and the same pinch felt by Palouse is hitting other towns in the county and state.