The Port Orchard finance committee on Sept. 16 reviewed the general sewer plan (GSP) and accompanying rate study and heard staff recommendations on a capital reserve target and additional operations staffing before a public hearing scheduled for the next week.

Public Works Director Dennis Ryan and Finance Director Noah Crocker told the committee that the consultants — Consort (general sewer plan) and FCS Group (rate study) — worked in parallel over the past two years. Crocker said the rate ordinance will be posted for public comment ahead of a council meeting planned Oct. 14, and that any adopted rate changes would be effective Jan. 1, 2026.

The two principal items discussed were a recommended capital reserve target for the sewer capital construction fund (Fund 433) and staffing identified in the GSP. The consultants recommended establishing a capital reserve equal to about 2% of original cost of fixed assets for Fund 433; staff estimated that target at roughly $1,200,000. Crocker told the committee that Fund 433 currently holds about $13,000,000 and described the recommendation as setting a minimum balance the city would avoid spending below when budgeting capital projects.

On staffing, Consort recommended two additional full‑time equivalents (FTEs) for sewer operations to improve preventive maintenance and reduce expensive emergency repairs. Ryan said those positions would be phased: one in 2026 and one in 2027. Crocker said FCS reran the rate table with those two positions included and that the addition increased the revenue requirement by roughly one percentage point — moving the proposed residential rate from about $1.51 (without the two FTEs) to about $1.53 per residential unit in 2026; the nonresidential proposal in the packet was about $2.37 per equivalent unit. Crocker also described equipment and operating costs associated with the FTEs: an estimated vehicle costing about $75,000 and a loaded salary/benefit cost of roughly $125,000 per FTE (spread over the multi‑year rate forecast).

Committee members raised questions on how a capital reserve would be funded and whether it would be replenished from capital facility charges (CFCs) or by transfers from operating funds. Crocker said Fund 433 is primarily sustained by capital facility charges and that the study did not assume raising those charges; a transfer from operating would be an option but was not part of the proposed rate change. Ryan explained that capital projects over time and development credits may interact with the city’s ability to maintain the reserve.

Council member John Morrissey proposed an alternative approach of setting a flatter, fixed residential rate (roughly $1.67) for multiple years so customers would have stability rather than smaller annual increases. Crocker said the packet already shows a six‑year forecast and that the council can choose a different phasing or a single multi‑year rate; staff will post the ordinance reflecting the direction the council gives so the public can comment at the hearing. Ryan and other council members emphasized infrastructure needs — including an identified pump station and other capacity upgrades — and that preventive investments reduce future costs. The consultants and public works staff will attend the public hearing and the council work‑study session to answer technical questions.

Direction from the finance committee: staff were asked to present the posted ordinance and six‑year rate forecast for public hearing next week and to provide clearer data on recent and projected sewer connections and additional detail about the staffing recommendation and the capital projects list. The meeting did not include a vote on rates; the public hearing will accept comment and no action is scheduled that night.