OTHELLO - Othello is increasing the sewer rate by 10 percent each year for three years to raise money for a new wastewater treatment plant.

The city council approved the rate increases during a recent meeting. The change increases the city's base sewer rate to $28.25 in 2013, $31.07 in 2014 and $34.18 in 2015. People receiving city sewer service who live outside of the city will see an increase to $42.37 in 2013, $46.61 in 2014 and $51.27 in 2015.

Businesses and schools pay the base rate plus separate charges, according to city records. Schools pay for each student and employees. The charge is increasing to 87 cents in 2013, 96 cents in 2014 and $1.05 in 2015.

Businesses pay an additional fee based for each 100 cubic feet of water they use above 1,000 cubic feet. The rate is increasing to $1.14 per 100 cubic feet in 2013, $1.26 in 2014 and $1.38 in 2015.

The increases follow several years of increasing the base rate by $2, City Administrator Ehman Sheldon said. The city is facing a Department of Ecology mandate to build a mechanical wastewater treatment plant within three years.

"We have saved about $4 million (during the past four years) and that's against an estimated cost of $20 to $25 million to build the plant," he said. "We took a look at sewer rates across the state and we're very close to the bottom. We have close to the lowest rates in the state. If we're not in the middle of the pack, we lose points on grants."

The city presently has an anaerobic plant, which uses a series of lagoons to treat its wastewater, Sheldon said. The water released from the plant meets standards.

"We're being forced into building a mechanical plant," he said. "This happens all across the state."

Sheldon explained the city tried to make the increases gentle, so people aren't shocked by the amount it needs to raise. He pointed out the 2013 increase is $2.57 in the base rate.

"We want this to be a gentle process for the citizens," he said. "The goal was to increase our rates so we don't have a huge impact."

Staff is hoping to have $7 million to $8 million saved by the time it needs to start applying for grants in a few years, Sheldon said.

"We're hoping to leverage that money for grants," he said.