Pasco just spent $1.4M so more homes can be built. Here’s where the money is going
Pasco is buying nearly $1.4 million in water rights to keep up with the city’s rapid growth and development because it has nearly exhausted its existing rights.
The Pasco City Council passed two resolutions Monday that allow the city manager to buy water rights from Columbia East LLC and Wilson Sisters LLC.
The water will come from four wells in Franklin County.
Combined, the new water rights will provide water for 546 homes on residential lots in Pasco.
City officials said in a report it has been collecting fees to buy water rights but it hasn’t been charging enough to keep up with development demands.
The city currently has $2.3 million in water and irrigation utility funds that can be used to buy new rights.
Officials have applied for a grant from the Washington State Department of Ecology which could reduce the amount that ratepayers would need to be charged for water.
Pasco will spend $1.3 million for 315 acre-feet of water rights from Columbia East. It will also buy 13 acre-feet of water rights from Wilson Sisters for $54,000.
In November 2023, the city council approved a 140% increase to its water rights acquisition fee, the fee it charges developers to buy new water rights. It was bumped up from $1,725 per acre-foot to the market rate of $4,150 an acre-foot.
The vote in November also included a new 50% surcharge on developers and property owners who gave up their water rights within the past 10 years but then asked the city to supply water rights for new buildings.
The surcharge fee that Pasco charges home builders and other developers to provide them with water rights was met with a big public outcry, but ultimately the ordinance was approved.
Then in April 2024, the city council changed the rules again to:
- Remove the 10-year surcharge that went into effect last December.
Evaluate water rights acquisition fees regularly every two years to account for market changes.
Explore and implement water conservation programs.
Changes to irrigation utility program
Earlier in December, Pasco announced that it is considering changes to its irrigation rates and fees.
It may make monthly rate increases and add a new connection fee of up to $1,500 per new irrigation customer.
The city said that charging this fee would ensure that new users share in the cost associated with growth rather than solely existing customers.
The irrigation system, serving over 9,000 people, operates separately from the city’s drinking water system and sources water from the Columbia River and 11 wells. Since 2017, the customer base has grown by 25%.
The city is looking for feedback online on the proposed rate changes. Also, a community listening session will be scheduled soon.
Pasco will present the feedback to the council in January. If approved, the new rates and fees could start by March.
