The Yelm City Council could accept a $23 million low-interest loan from the Washington State Department of Ecology to upgrade its Water Reclamation Facility at its Nov. 23 council meeting.

According to information presented at the Nov. 2 council study session, the city will not have to raise water rates to pay off the loan, which will allow for the installation of a membrane reactor at the facility, which would double the capacity of the city’s sewer plant.

“We don’t need to do anything to our current rates to pay for this low-interest loan if we take it out,” said Yelm Public Services Director Cody Colt. “We’ve been able to save enough money the last two years, and with the loan repayment process not starting until two years after the construction is complete, we will not need to adjust rates to pay for this loan. We will be able to keep rates in their current state.”

Colt said he went through the budget with Yelm Finance Director Stephanie Dice and found cost savings there, while the sewer staff balanced the work of the plant to keep everything in-house as much as possible to create considerable savings.

Councilmember Molly Carmody was excited by the news that rates would not rise in order to pay off the loan.

“Are you kidding me?” Carmody said. “That’s the best news ever. Thank you for all of the hard work that everybody has done on this. I was so worried to hear that we were going to have a $20 increase or a $30 increase, because that’s what we talked about at the last committee meeting. Holy cow, Cody, you knocked it out of the park.”

The council also discussed a possible one-time park impact fee that would be charged to new residential developments in Yelm, which would be paid by developers.

Yelm Planning and Building Manager Landon Hawes said park impact fees are a cost-effective method of providing funds for new and existing parks in Yelm. The fees would be charged for each new single-family and multifamily unit in Yelm.

Yelm city parks cost the city $965.86 per household, Hawes said, so “that would be the fee we would charge.”

The fees would relieve pressure on the city’s general budget to maintain, build and beautify Yelm parks, Hawes said. The fees could also pay for a city pool or recreation center, among other initiatives, he said, and could raise property values in Yelm.

An ordinance on the matter should go before the city council in the next three months, Hawes said.

Also at the meeting, Yelm City Administrator Michael Grayum presented the city’s possible 2022 legislative agenda.

Grayum said the city could lobby to accelerate the completion of the Yelm Loop and advocate for roundabouts on state Route 507 to reduce bottlenecks that occur in McKenna.

Yelm could also advocate for the continuation of the Yelm Prairie Line trail, the establishment of an electric vehicle infrastructure, and the establishment of a habitat conservation fund to comply with endangered species requirements, among other initiatives.

Councilmember Joe DePinto said he wanted to make sure the city’s priority is to focus on the initiatives that affect Yelm the most.

Hawes also told the council the city wants to spend some grant money to hire a consultant for its habitat conservation plan, which would mitigate the dangers posed to Mazama pocket gophers and other threatened species in the area. More information will be presented at upcoming city council meetings.

Additionally, city staff said it would bring the new transportation system plan, which will provide transportation systems guidance for the next 20 years, to city council at upcoming meetings.

During council member initiatives, Councilmember EJ Curry raised concerns over Carmody’s living situation.

“I understand congratulations are in order, Molly,” Curry said. “You bought a house in Chehalis. I was wondering, when are you going to tender your resignation?”

Carmody explained that she hasn’t moved there yet.

“I’m still living in town,” Carmody said, adding that her current residence is a camper on private property within city limits.

Curry pressed Carmody, saying she was at her Chehalis residence on Halloween.

“EJ, I can stay there three nights a week and can live here four nights a week,” Carmody said. “If I’m here four nights a week, it’s still considered full time.”

Mayor JW Foster said the city will consult with its attorney on the matter.

“Well, (it’s) not necessary for us to get into an argument about Councilmember Carmody’s legal status to stay on the council,” Foster said. “The question has been asked. I will take that question forward to our attorney and get a legal opinion on that that we’ll present back to (the) council … and then (the) council can take whatever initiative that they feel is necessary based on this advice and counsel.”