Lynden Council Reviews Sewer Rates and Fair Tax Changes

City officials in Lynden presented proposed changes to sewer rates and local taxes to the city council on Tuesday. The meeting addressed financial planning for wastewater infrastructure and adjustments to how the city collects admission fees.

Public Works Director Jon Hutchings stated that a rate study is required before the city begins renovations on the wastewater treatment plant. Chase Bozett from FCS Group presented the findings to council members. He recommended a 10% increase in sewer rates for all users in 2027. This adjustment aims to align revenue with debt service for the current renovation project while setting aside funds for future repairs.

Bozett explained that future increases will vary by customer type. From 2028 through 2031, multifamily units likely will not see increases. Commercial users would face annual increases of 16.5%, and industrial users would see increases of 13.5%. Single-family homes would see a 7.5% increase in 2028, followed by annual increases of 2% to 3%. These specific adjustments are designed to bring each customer class closer to their actual cost of service.

The consultant also outlined a second scenario with more gradual changes. In this option, all rate increases would be capped at 10%. Multifamily homes would see increases of about 3.5% annually from 2028 to 2031. Single-family homes would see a 7.5% increase in 2028, followed by about 4% annually for the next three years. Hutchings noted that this approach provides room to adjust rates downward in 2029 if needed.

Council member Gary Vis asked how slower population growth would affect the plan. Bozett responded that lower revenue could delay capital projects. The council did not vote on the sewer rates during the session. The presentation served as an informational step in the budgeting process.

The council also discussed changes to the admission tax. The tax is currently 5% on admission charges, season tickets, and cover fees. New code changes would allow the tax to apply to reduced charges, meaning free admission would not trigger the fee. Finance Director Laura Scholl stated that grandstand entertainment generates roughly half of the expected revenue from this fee.

Council members Brent Lenssen and Lee Beld noted that the fairgrounds generate police and fire calls while paying minimal property tax. Lenssen described the tax as necessary for the budget despite feeling like small amounts. Beld stated he did not expect the 5% fee to stop people from attending the fair. The council also approved four public hearings, including two for a Community Agriculture Zone scheduled for Dec. 7 and a final hearing for the 2027 budget on Dec. 6.