Members of the Coupeville Town Council got their first look at proposed utility rate increases during a special workshop last week and some council members were concerned the rate hikes might not be high enough.

Coupeville hasn’t had a utility rate increase in 14 years. The proposed rate structure includes an increase in sewer utility and a first-ever stormwater utility charge.

The proposed increased would cost an average residential utility customer an additional $42 on each two-month bill for the first year. Then there will be a “modest” percent increase each following year for four years.

By law, the town is required to charge utilities rates that will cover the cost of infrastructure, general operations and maintenance as well as staff time.

“We’re required by law that our utilities have to be self sufficient,” said Mayor Molly Hughes.

Town staff have been conducting a rates study for several years, looking at needed future infrastructure, vehicle replacement, additional staffing needs, and other costs.

Water rates haven’t increased in 20 years, but because the town recently sold a conservation easement at one of its well sites, water utility coffers are full enough not to warrant an increase now, Hughes said.

The proposed stormwater tax would be a new fee, if approved by the council. It breaks down to $10 a month.

Worked into the rate structure is a vehicle replacement plan and equipment replacement, as well as additional staff positions for sewer and stormwater.

“Hopefully, this added employment will help with maintenance, replacement and repair of lines and flushing,” Hughes said. “When we have a hard winter like we did, you see when we haven’t kept up with our stormwater.”

The goal is to go through the public process with these rate proposals and have the process completed for staff to implement new rates in the fourth quarter of 2016.

“We’ve tried to be as realistic and fair as we possibly can,” Hughes said. “It’s a large increase in the fourth quarter to catch up to what our needs are.”

Town Clerk Kelly Beech said she’s compared the proposed rates to that of Langley and Oak Harbor.

When breaking the rates down to be comparable with Coupeville’s two-month billing cycle, she said the comparison is apples to apples.

And even with rate increases, Coupeville’s apples are still much cheaper compared to the island’s other municipalities.

Currently, an average residential customer in Coupeville pays $146 every two months. In Langley, a resident pays $295 and in Oak Harbor, $279. Coupeville’s proposal would bring the average bill up to $189 the first year and to $214 by the fifth year.

A large portion of its rates structure is based on usage, Beech said, so residents have the ability to minimize the costs.

“This is the absolute minimum we can do to still cover what we need to,” Hughes said.

Councilmembers Henderson and Pat Powell questioned if the rates were high enough to meet the town’s needs.

“It almost seems too low for catastrophes,” Powell said.

Council also questioned the staffing portion of utilities and if the town could consider looking at ending its practice of contracting for engineering services and bringing an engineer on staff. That position could be covered with multiple funds within the budget, including utilities, depending on the types of projects presented. Staff members were directed to look into that possibility and see how it would impact the proposed rate increases.

Council also expressed interest in holding public educational meetings on the proposed increases and other educational outreach opportunities.