County 'blackmails' Kalama over rural water

Wednesday, March 3, 2004 7:14 AM PST

By Hope Anderson

In response to the city of Kalama's recent water rate hike, Cowlitz County commissioners are threatening to cut off sales tax rebates to cities that have lopsided utility rates for rural customers -- and that has Kalama city officials yelling "blackmail."

"I've seen a lot dumber things in my life, but this has to be in the top 10," Kalama Mayor Randy Bradshaw said Tuesday. "It looks more like a political ploy than good sense."

The proposal, introduced Tuesday by Commissioner Jeff Rasmussen, would ban sales tax rebate money for water and sewer projects if cities charge rural customers more than 160 percent of what city residents pay.

Kalama's current rates, effective Feb. 1, charge out-of-city customers 230 percent more for water service than customers inside the city. Formerly, the rate was 150 percent more. Most cities in the county charge between 150 to 160 percent, Rasmussen said.

"This is in response to the rate structure that was adopted in Kalama," he said. "Part of my goal is that everybody is treated as equally as possible."

Kalama city officials say the county's move is a strong-arm tactic.

"Sounds to me like they're kind of blackmailing," Councilman Bud Gish said.

The city is burdened with debt, and the recent hike offsets costs to provide service to customers outside the city, officials said, and the county's move would hamstring the city.

"If they're going to limit people on the amount of money they can generate, does that mean the county is going to make up the difference?" Councilman Pete Poulsen asked. "Does county law supersede city law?"

"Any time they want to come in with a pocket full of money and pay our bills, come on in," he said. "I'd like to know how they would like to manage our budget."

The City Council already had planned to revisit the water rates tonight in a workshop, and the county's proposal may throw an extra ace in the deck for out-of-city customers.

"I think that's a wonderful thing. I mean, that's coercion," said Art Fleming, a resident of Columbia Terrace Estates, which is outside the city limits. "Things are getting interesting."

The proposal, which commissioners will discuss and vote on March 9, caught Kalama officials off-guard.

"It's remarkable that if they would go to such levels, they would at least have the decency to call us up ahead of time," Bradshaw said and added that if the resolution passes, it will burden Kalama taxpayers even further.

He lambasted the county for not giving "a dime" when the city asked for funds for its new water treatment plant.

"They weren't there to help pay," Bradshaw said. "They certainly could have impacted rates on the front end."

Gish said he wanted to revisit the rates anyway, but said the county's move was underhanded.

"I don't believe it's going to have an effect one way or another on my decision, because I'm not going to base my decision on a threat," Gish said.

The funds at stake are a .08 percent sales tax rebate that the state distributes to the county. Since 1998, the county has handed out $10.1 million, according to county officials.

Kalama received $500,000 from the county in 2002 for the new sewer treatment plant, which is expected to be completed by the end of 2004. Longview has used the funds for street repairs, Kelso for airport improvements and Woodland for its sewer treatment plant.

The county's proposal to interfere in city's rates may be unprecedented. Former county commissioner Chet Gardner, who served between 1954 and 1974, said the county has made similar moves, but in the past has tried to coordinate rather than confront.

But in Kalama's case, Gardner said the commissioners are justified in the proposal.

"They are right in confronting the city of Kalama in this because it's ridiculous to charge that much," he said. "It's unreasonable, it just cannot be."

Rural water users have flooded the City Council with letters and e-mails protesting the hike and have shown up in droves at recent Council meetings.

Out-of-city customers said the county's move may help reinforce their plea to the city.

"We obviously know that they're doing it specifically for us," said Karen Huggins Murphy, a resident of Columbia Terrace Estates. "Thank you for considering our plight."