MOSES LAKE - Moses Lake ratepayers have been granted a reprieve from a 2.7 percent hike in water, sewer and stormwater rates this year.

Earlier this week the Moses Lake City Council voted 5-2 against increasing the rates, with the majority citing the need to give residents a break during a tough economy.

"I just cringe at bringing these rates up again because people are stretched to the max right now," said Councilwoman Karen Liebrecht.

In 1998 the city adopted an ordinance tying rates to the consumer price index (CPI), which measures changes in the price level of consumer goods and services purchased by households. The council opted for the more gradual rate structure following a number of years with steep increases - some as much as 20 percent - and little money left over for water/sewer projects, according to city manager Joe Gavinski.

Since then, Gavinski said ratepayers have seen annual increases ranging from 3 percent in 2001 to none in 2009. Last spring the rate was raised by 1.3 percent, keeping Moses Lake "pretty much in the middle" compared with the rates charged by other municipalities in the region, according to Gavinski.

"Would it put us in a pickle if we didn't do the CPI increase this year?" asked Councilman Brent Reese. "I know we're growing, I know it takes a lot of money to keep the city up to snuff as far as water and sewer goes and it always will, but I would like to see us at some point give the ratepayers a break."

No increase would mean completion of fewer construction projects, he said, explaining water/sewer utility payments are deposited into the water/sewer operating budget first, with any excess then transferred to the water/sewer construction fund and used to finance a range of projects throughout the year.

Operating costs increase every year, Gavinski said, so keeping rates flat this year will limit or eliminate any excess for projects such as the relining of sewer mains across the city, which has been done in piecemeal fashion over the past decade.

"It's safe to say a lot of these increases have gone to support projects of that nature and have given the city the ability to do that," he said. "If the money doesn't come in then you don't transfer the money to the construction fund because maintenance and operations is going to take precedence."

Councilman Dick Deane argued in favor of the increase, saying the CPI rate structure has worked out well for the city.

"There are two or three cities within 35 miles of where we're seated right now that are wishing they had done what we have done because they're trying to raise theirs as much as six dollars for next year," he said.

Deane also recounted how last summer the national rating agency Standard and Poor's upgraded the city from "A plus" to "AA minus" - the fourth highest rating grade the agency offers - based in large part on the city's decision to raise rates based on the CPI.

At the time, Jim Nelson with the banking firm Martin Nelson and Company told council that regular, incremental rate increases are easier for rate payers to digest than occasional, larger hikes. Rating agencies recognize this and reward cities that adopt regular and formal rate practices, he said.

"My question is, why would we not vote to pass this 2.7 percent, because it is feasible and it's proven to work?" Deane asked his fellow council members this week.

"To answer that question, just to give ratepayers a break for one year. That's it," Reese replied. "All the other years we can go by CPI."

Liebrecht agreed, saying sewer/water projects could be postponed.

"It will procrastinate our projects but I think due to the economy right now we can make some projects wait one year," she said.

Council members Liebrecht, Reese, David Curnel and Jason Avila voted against the increase while Deane, Jon Lane and Mayor Bill Ecret voted in favor.