Cashmere delays utility budget approval to review equipment costs

CASHMERE — The Cashmere City Council delayed approval of a proposed utility operating budget Oct. 12, asking to review equipment replacement costs alongside operating expenses before making a decision.

The proposed budget from Woodard & Curran, which operates the city’s water and wastewater facilities, would move equipment replacement expenses from the operating budget into the city’s capital budget.

Council members requested the accompanying capital figures to better understand the full cost. Staff said those figures could be provided at the next meeting.

The proposal comes as the city enters its sixth year with the contractor. A transition fee charged during the first five years of the contract will expire, helping offset increases elsewhere in the budget.

The contractor’s presentation from Senior Principal Chris McMahon via Zoom identified labor, biosolids disposal and fuel among the major cost pressures. Employees earning higher operator certifications and gaining experience are contributing to increased labor expenses.

Biosolids hauling costs also increased more than anticipated between 2025 and 2026. The proposed budget accounts for that increase and expected usage next year, with diesel surcharges adding to transportation costs.

Councilmember Jayne Stephenson questioned whether expenses should begin leveling off after the improvements made during the contractor’s first several years and whether services could be trimmed to keep costs affordable.

City officials and the contractor said equipment maintenance remains necessary as the wastewater treatment plant ages. The plant is more than 15 years old, and equipment is periodically rebuilt or serviced to maintain reliable operations and meet regulatory requirements.

Officials also recalled that difficulty recruiting qualified operators at the wages the city previously offered was a factor in the decision to contract out operations.

McMahon reported efforts to control expenses by reducing chemical use, electricity consumption and unnecessary vehicle travel.

Despite increasing chemical prices, the proposed chemical budget would remain level. Electricity savings at the wastewater treatment plant are also expected to help offset rising utility costs.

Council members noted that the decrease in the proposed maintenance and repair budget partly reflects the movement of equipment replacement expenses into the capital budget.

The council voted to table the operating budget until it can review the corresponding capital costs. No utility rate change was approved during the discussion.

Andrew Simpson: 509-433-7626 or andrew@ward.media