Another odd fix planned for changing local taxes surfaced at a Dec. 7 Issaquah City Council public meeting.

In Oct. 2008 the thanks to the State Supreme Court ruled that city fire hydrants are general governmental services and not utility costs, thus requiring the city to pay for them out of its general fund.

The ruling in the case, Lane v. City of Seattle, also found the city’s water utility, Seattle Public Utilities, liable for 12 percent interest on the money paid by customers.

To bring the Issaquah in compliance with the court’s ruling and shield them from potential liability, the Public Works Department is proposing a combination of lowering city water rates by 2.28 percent, while raising utility taxes by 2.33 percent. The measures are tuned to affect approximately $129,000 the city spends each year on the hydrants, which would make the council actions revenue-neutral.

The measures, which were considered during a Dec. 9 Utilities Commission meeting after The Reporter’s deadline, are reminiscent of the city council’s declaration of substantial need to hold local property taxes at the same amount. That tax fix was needed when the city decided to hold the real estate levy revenues steady.

Issaquah also decided, as most other municipalities in the state, to ignore offering the 12 percent interest rebate to rate payers.

“Issaquah is applying this ruling consistent with other cities on this issue,” said Public Works Deputy Director Sheldon Lynne. “Seattle was ordered to pay back it’s customers, according to the court.”

The change in fire hydrant funding is scheduled to return to the council in Feb. 2010.

The City of Issaquah maintains 1,218 hydrants and provides water service to over 6900 customers both inside city limits and in potential annexation areas.

About 85 percent of the utility’s customers are single family residences. Most of the public water is drawn from from wells with the remaining coming from Cascade Water Alliance.