Title
LOTT Proposed 2025-2026 Budget and Rates
Recommended Action
Briefing. Include any feedback in letter to Council on budget, rates, and fees.
Report
Issue: Review 2025-2026 Proposed Budget, Wastewater Service Charges, and Capacity Development Charges.
Staff Contact:
Jesse Barham, Water Resources Director. Public Works Water Resources, 360.753.8164
Presenter(s):
Matt Kennelly, P.E., Executive Director. LOTT Clean Water Alliance
Justin Long, CPA, CGFM, Director of Finance and Administration, LOTT Clean Water Alliance
Background and Analysis:
LOTT Clean Water Alliance is a 501(c)3 non-profit corporation that provides wastewater treatment for the Olympia Community and our three other government partners. LOTT’s mission is to preserve and protect public health and the environment by cleaning and restoring water resources for our communities. Wastewater flows through City-owned sewer infrastructure to LOTT-owned interceptors that carry wastewater to one of LOTT’s two treatment facilities. At the Budd Inlet Treatment Plant, wastewater is treated and discharged to Budd Inlet. The treatment plant is a critical community asset that provides advanced secondary treatment, including removal to help protect water quality in our local marine waters. A portion of the flow at the Budd Inlet Plant and all the flow at the Martin Way Reclaimed Water Plant is treated to Class A reclaimed water standards for beneficial uses.
An overview of LOTT’s 2025-2026 Proposed Budget, proposed rates, projects, and planning efforts will be provided.
Climate Analysis:
The LOTT Budd Inlet Treatment plant is a critical community asset that has a significant carbon footprint due to the energy-intensive nature of treating wastewater, as well as potential methane production during wastewater treatment processes. Recent projects and process improvements have reduced electrical usage and emissions. Future projects are planned to further reduce LOTT’s carbon footprint over time. Methane generated in the process is reused in a cogeneration facility to further offset energy use and reduce LOTT’s carbon footprint.
LOTT is also participating in the sea level rise collaborative work to ensure their critical infrastructure and processes are resilient over the long term.
Equity Analysis:
LOTT rates have potential impacts on the most vulnerable portions of the Olympia community, those with the least ability to pay. LOTT’s services also protect the environmental and human health of these communities. LOTT has a pilot program to discount connection fees for low-income housing projects and participates in city/community action council administered utility assistance programs to address financial hardships for eligible customers.
Neighborhood/Community Interests (if known):
LOTT provides essential public and environmental health services by providing advanced wastewater treatment to the Olympia community and other partner governments.
Financial Impact:
None at this time. The City collects LOTT rates and connection fee revenues on their behalf. LOTT rates and fees are set by the LOTT board every 2 years in their biennial budget cycle.
Attachments:
None